Digitalization, Cooperative Society and Agricultural Credita Systematic Literature Review

Abstract

The framework of short-term rural credit builds on the vision to meet the credit requirements of rural India, thereby strengthening the village economy and fostering rural development. It is an efficient structure to channel Government subsidies and welfare schemes to farmers, artisans and socioeconomically marginalized rural communities. It has three tiers: State cooperative banks (SCBs) at the top, Central Cooperative Banks (DCCBs) at the district, and primary agricultural cooperative societies (PACS) at the village level. The recent advancement in technology not only improves the operational functions of credit cooperatives but also brings transparency to financial transactions, minimizes accounting errors and improves the efficiency and outreach of financial services and products. This article systemically draws attention to the recent digitalization resolution passed by the Government of India and how it has the potential to streamline functions of the rural credit cooperative societies and assists the state in achieving rural development.