An Analytical Study of Fintech Utilisation and Digital Development in Primary Agricultural Credit Societies

(https://doi.org/10.5281/zenodo.21626381)

Abstract

Primary Agricultural Credit Societies (PACS) are the basic level of the short-term cooperative lending framework in India. PACS, historically reliant on manual methods, has encountered operational inefficiencies, transparency issues, and limited outreach. Recent fintech-led digitization efforts, notably the Government of India’s PACS computerization budget plan of ₹2,516 crore, later revised to ₹ 2,925.39 crore, seek to digitally transform more than 63,000 societies, later revised to 79630 PACS, using Enterprise Resource Planning (ERP) systems and integrated digital platforms. This study analytically evaluates the current extent of fintech adoption and digital transformation in PACS, using secondary data from government publications, NABARD reports, and digital payment statistics. The results demonstrate substantial advancements in digital onboarding and fintech use, enhanced operational transparency, and greater connectivity to national payment systems. However, inequalities persist across states and levels of infrastructure readiness.