Question

Primary Agricultural Cooperative Credit Society (PACS) was the consequent of enactment of which of the following Act(s) ?

• A. All India Rural Credit Review Committee, 1966
• B. Co-Operative Societies Act, 1912
• C. All India Rural Survey Committee and Co-Operative Societies Act, 1946.
• D. Co-Operative Societies Act, 1904

Hint:

The 1904 Act focused purely on "Credit" societies, while the 1912 Act expanded the movement to include "Non-Credit" (marketing/processing) and "Federal" (higher-level) societies.

Answer 1

The Correct Option is D

Concept: The cooperative movement in India was legally institutionalized to provide institutional credit to farmers at reasonable interest rates, moving them away from the clutches of private moneylenders.

Step 1: Identify the origin of PACS.
The Primary Agricultural Cooperative Credit Societies (PACS) are the grassroots level institutions of the short-term cooperative credit structure in India. Their origin dates back to the very beginning of the cooperative movement in the country.

Step 2: Evaluate the legislative history.
The Co-operative Societies Act of 1904 was the first legislation enacted in India specifically to facilitate the formation of cooperative credit societies. It was based on the recommendations of Sir Frederick Nicholson. This Act paved the way for the establishment of PACS at the village level.

Step 3: Distinguish from later Acts.
The 1912 Act was later passed to allow the formation of non-credit societies and central cooperative organizations (like District Central Cooperative Banks), but the foundation for village-level credit societies (PACS) was laid by the 1904 Act.