Karnataka plans common software for PACS, DCC banks in State

Our Bureau Mangaluru | Updated on July 14, 2021

The software will aid in smooth functioning of the institutions, according to Cooperation Minister ST Somashekhar

The Karnataka Government is planning to implement common software for all the PACS (primary agricultural credit societies), DCC (district central cooperative) banks and the Karnataka State Cooperative Apex Bank Ltd, according to Karnataka Cooperation Minister, ST Somashekhar.

Addressing mediapersons during his visit to Mangaluru on Wednesday, he said the Karnataka Budget for 2021-22 had proposed the implementation of a common software for PACS, DCC banks and the Apex cooperative bank in the state. The State has around 5400 PACS and 21 DCC banks.

The implementation of a common software would help in the smooth functioning of the activities of all these institutions, he said, adding it will aid in the effortless disbursal and recovery of loans to farmers.

Estimated cost of ₹198 crore

The software is estimated to be implemented at a cost of ₹198 crore. While the Centre will share 60 per cent of the cost, the State government will share the rest, he said.

The minister said that the Covid pandemic has taken the lives of more than 10,000 members of PACS and DCC banks in the State. There was a demand from cooperative members to waive loans of those who died due to Covid. An amount of around ₹81 crore is needed for the total loan waiver of these 10,000-plus borrowers. The minister said he would convene a meeting of the chairpersons and managing directors of DCC banks and Apex cooperative bank to discuss this matter.

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Somashekhar said that the Cooperation Department has set a target of disbursing ₹20,810 crore loans at zero per cent interest rate to 30 lakh farmers, through PACS and DCC banks, in the State during 2021-22.

Around 24.5 lakh farmers were given these loans to the tune of ₹16,795 crore during 2020-21. The loan disbursal target for 2020-21 was around ₹15,300 crore, he added.

Published on July 14, 2021

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