Bihar Govt To Link 2,456 PACS With District Cooperative Banks To Boost Rural Business Activities

In a move aimed at strengthening rural economic infrastructure, the Cooperative Department of Bihar is preparing to link 2,456 Primary Agricultural Credit Societies (PACS) with District Central Cooperative Banks (DCCBs). The initiative is part of a larger plan to promote business activities, rural tourism, and local product marketing through PACS.

The department has directed all 23 DCCBs in the state to submit proposals for Memorandums of Understanding (MoUs) with PACS by July 15. The goal is to connect all 8,400 PACS in Bihar with cooperative banks by next year. In the second phase, around 2,300 additional PACS will be brought under this framework.

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Once linked, each PACS will be eligible for a loan facility of up to Rs 5 lakh, which could be enhanced based on their credit history and performance. Officials believe that access to credit will enable PACS to diversify into new businesses, including homestays, rural transport, tour packaging, and product marketing.

Cooperative Minister Dr Prem Kumar has instructed PACS to actively explore avenues like homestay services, rural tourism, processing and branding of local goods, especially Makhana. An action plan is also being prepared to provide financial support to Makhana farmers via the Kisan Credit Card (KCC) scheme facilitated through PACS.

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The proposal includes setting up processing units, packaging centres, and branding support for local products, thereby promoting self-employment and entrepreneurship in rural areas. Once implemented, the initiative is expected to significantly improve the financial health of PACS and contribute to the broader goal of rural economic development in Bihar.