Lok Sabha Question No. 2656 (UNSTARRED), answered on 2025-12-16
Subject: PACS in Ladakh
Ministry: COOPERATION
Asked by: Shri Mohmad Haneefa

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION No. 2656 TO BE ANSWERED ON 16 th  DECEMBER, 2025

## PACS in Ladakh

## 2656 Shri Mohmad Haneefa:

Will the Minister of COOPERATION ( सहकारिता मंत्री ) be pleased to state:

- (a) whether the Government is aware that Ladakh has one of the lowest numbers of functional Primary Agricultural Credit Societies (PACS) in the country and that only ten PACS have so far been approved for computerisation under the national modernisation project;
- (b) if so, the reasons for such low coverage of PACS and their computerisation in this strategically important and remote Union Territory;
- (c) whether the Government proposes to increase the number of functional and computerised PACS in Ladakh and if so, the details thereof;
- (d) the steps being taken to strengthen the cooperative credit structure and diversify cooperative activities in Ladakh including capacity building and IT support; and
- (e) whether  any  special  package  or  timeline  has  been  prepared  to  bridge  Ladakh's  gap  with leading States in PACS computerisation and cooperative development and if so, the details thereof?

## ANSWER

## THE MINISTER OF COOPERATION सहकारिता मंत्री (SHRI AMIT SHAH)

(a) to (c) As per the 2011 Census, Ladakh has a total population of 2,74,289, including a rural population of 2,12,280, which are covered by 169 PACS out of which 129 currently functional and are engaged in PACS-related activities. Ladakh has made significant progress in strengthening its cooperative landscape, despite sparsely populated region, every panchayat in Ladakh has an operational PACS. Under the Phase-1 of PACS Computerisation Project, 10 PACS of Ladakh have been approved for computerisation so far, five each  from Leh and Kargil. Also, the UT Administration  has  proposed  additional  23  PACS  for  computerisation  in  Phase-2  of  PACS Computerisation Project.

In line with the national vision of 'Sahakar se Samriddhi', to deepen and expand the cooperative movement, Ladakh has adopted the Model Bye-Laws for PACS, enabling them to undertake over 25 diversified business activities while enhancing transparency, accountability, and governance. The UT is also participating in major national initiatives such as the establishment of 2 lakh new Multipurpose PACS, Dairy and Fisheries Cooperatives, and convergence schemes like PACS as CSC, PMKSK, and PMBJK to expand services in uncovered areas. So far, 3 M-PACS, 3 Dairy and 1 Fishery have been formed under the plan to establish new multipurpose PACS, Dairy, and Fisheries cooperative societies.

(d)  &  (e)  The  Ministry  of  Cooperation  has  launched  various  initiatives  to  strengthen  the cooperative credit structure and diversify cooperative activities including capacity building and IT support across the country including Ladakh. Key initiatives include:

- i. Model  Byelaws  of  PACS,  enables  PACS  to  undertake  more  than  25  business activities, improve governance, transparency and accountability in their operations. Now, PACS can operate as PM-Kisan Samridhi Kendras (PMKSKs), Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs), Common Service Centres (CSC) etc. At present, 10 PACS have applied to open PM Jan Aushadhi Kendra, and 7 PACS are already providing CSC services, in Ladakh.
- ii. NCCT, through its training institutions, conducts a wide range of capacity building programmes aimed at strengthening the cooperatives across the country. Participants from Ladakh were also trained in the Higher Diploma in Cooperative Management (HDCM) course under NCCT through RICM, Chandigarh.
- iii. PACS  Computerisation  Project,  was  introduced  to  standardize  software,  digital accounting, online service delivery and improved transparency.
- iv. Capacity-building and ERP training for PACS by the System Integrator and district cooperative officials.
- v. Distribution of IT hardware to computerised PACS for online services.
- vi. Initiatives  taken  up  with  the  assistance  of  Department  of  Financial  Services  and Reserve  Bank  of  India  to  strengthen  the  structure  and  functioning  of  Cooperative Banks and to bring them at par with other commercial banks. (List of activities is annexed).
- vii. The PACS Computerisation Project is being implemented in a phased manner.

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Initiatives taken up with the assistance of Department of Financial Services and Reserve Bank of India to strengthen the structure and functioning of Cooperative Banks:

- 1) Urban Co-operative Banks (UCBs) are now allowed to open new branches to expand their business.
- 2) Cooperative Banks are now able to make one-time settlement of outstanding loans, like Commercial Banks.
- 3) Additional time limit has been given to achieve the Priority Sector Lending (PSL) targets given to UCBs.
- 4) RBI has permitted UCBs to provide door-step banking services to their customers.
- 5) A Nodal Officer designated in RBI for regular interaction with UCBs
- 6) RBI has more than doubled the individual housing loan limit for RCBs and UCBs.
- 7) RCBs will now be able to  lend  to  commercial  real  estate  -  residential  housing  sector, thereby diversifying their business.
- 8) Co-operative  Banks  have  been  included  as  Member  Lending  Institutions  [MLIs]  of CGTMSE.
- 9) License fee for onboarding Co-operative Banks to the modern 'Aadhaar Enabled Payment System' (AePS) has been reduced by linking it to the number of transactions.
- 10) Notification of scheduling norms for urban co-operative banks has been published.
- 11) RBI has doubled monetary ceiling for Gold Loan under Bullet Repayment Scheme from 2 Lakh to 4 Lakh for those UCBs who meet the Priority Sector Lending (PSL) targets.
- 12) An Umbrella Organization (UO) for the UCB sector named National Urban Cooperative Finance and Development Corporation Limited (NUCFDC), has been formed which will provide necessary IT infrastructure and operation support to UCBs.
- 13) Limit  for Agricultural  Cooperative  Societies  (Dairy)  under  Priority  Sector  Guidelines increased from ₹5 crore to ₹10 crore
- 14) To provide technological services to RCBs and for their strengthening, NABARD with the approval of RBI has set up Sahakar Sarathi (Shared Service Entity).
- 15) Relief to Urban Cooperative Institutions by increasing 50% loan limit from ₹ 1 crore to ₹ 3 crore.
- 16) Amendment in the Banking Regulation Act to fix the tenure of the BoD of cooperative Banks as per the Constitution (maximum 10 consecutive years)
- 17) Rural Cooperative banks are included under Ombudsman Scheme of RBI
- 18) PSL target for UCBs reduced from 75% to 60%
- 19) 12% weaker-section sub-limit eased for UCBS and ₹2 lakh target for women has been removed
- 20) RCBs are now allowed to open (max 10) branches through automatic route
- 21) Relaxation in financial norms to UCBs & RCBs for providing modern banking services
- 22) Relaxation from penalty clause under FSWM norms.

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