There were 92,996 Primary Agricultural Credit Societies (PACS) as on March 31, 2014 at the grass root level catering to the credit requirements of the members but also providing several nonfinancial services like input supply, storage and marketing of produce, supply of consumer goods, etc. 4. The journey has not been smooth for the cooperative banking structure.
There were legal, structural and organisational rigidities which created conflicts and challenges in the functioning of cooperatives. 5. Reserve Bank of India as regulator of banks is mandated to maintain a sound and stable banking system.