Nabard clarifies norms on PACS

NABARD had issued certain guidelines to Cooperative Banks on 22 July this year regarding Primary Agriculture Co-operative Societies (PACS) to act as Business Correspondents (BCs) of District Central Cooperative Banks (DCCBs)/State Co-operative Banks (StCBs). The Co-operative Banks in some of the states had made an issue out of it. In this regard, NABARD clarified that the guidelines were by way of clarifying the Reserve Bank of India's (RBI) guidelines dated 10 June 2013 on the subject matter. NABARD reiterated that PACS would continue as they are and function as per the Cooperative Societies Act and Bye-laws, except the change that will only happen in business orientation and sharing responsibility by PACS and CCBs.