Computerisation of Primary Agricultural Cooperative Societies (PACS)

Key issues and challengesAnirban Mukerji

anirmukerji@gmail.comThis presentation was prepared in Feb 2007 and may be

dated

Computerisation of PACS PACS are key to the government’s plan for

delivery of loans to farmers for agricultural activities.

Computerisation is not mere data digitisation of but can achieve transformation of activities of PACS

Activities of PACS

Short term loans to members Accepting Savings deposits from

members Running PDS shops Selling agricultural inputs Running Janata Bazar

Advantages from Computerisation Tracking of loans / followup with defaulters Sending of Demand notes to Farmers Administration of Kissan Credit Card Scheme which

functions like a Overdraft Limit, Farmer can make multiple deposits and withdrawals

Calculation of Interest payment Calculation of any changes in Interest rates due to

government policies Linking up with the Land records database, cross

checking of crop details Building a record of regular payers

Stakeholders of PACS computerisation Farmer Employees of PACS – Secretary, Accountant The Board of the PACS DCCB Bank Cooperative Audit Department Line Functionaries – Assistant Registrar’s Deputy

Registrar’s, Joint Registrars Apex Bank State Finance Department NABARD

Benefits to stakeholders Farmers

Accuracy in calculation of deposits and loans Improvement in overall functioning of PACS will result in

improved customer Service Can check his account from remote computers if he wants

to check Transparency in functioning of PACS

PACS Employees Will reduce workload of routine activities and hence can

concentrate on value added activities Faster audit of PACS due to computerized accounts Accurate MIS to all stakeholders

Computerisation models• Dedicated Computers in PACS for

computerisation of PACS functions• In addition to PACS work, the computers can be

used for Bhoomi, Nemmadi and other e-Governance programs

• Revenues from e-Governance services can reduce the cost of computerisation

Cost of Computerisation Financial

One Time Fixed Cost of Rs. 1.3 Lakhs Running Expenses of Rs. 1250 per month on

Electricity, Consumables, Internet Support Expenses of Rs. 3000/- per month Total Cost of Computerisation over a 5 year

period = Rs. 4.2 Lakh Rupees per PACS Vaidyanathan committee report has a

provision for funding for computerisation of PACS

Issues in Computerisation New way of doing business

Secretary and accountant will have to learn and operate computers

Can’t say they do not know anything about computers If complete computerisation is achieved, work will be

disrupted when computer is not working, or authorised officials are not available

Manipulation of Computers If computer is not protected against unauthorized persons

data can be manipulated Secretary may give his password to other officials

Logistical issues like physical security, power,