Q. Consider the following statements regarding Primary Agricultural Credit Societies (PACS):

1. PACS is the basic unit and smallest co-operative credit institution in India.
2. PACS are registered under the Co-operative Societies Act.
3. PACS are regulated exclusively by State Cooperative Banks.

Which of the statements given above is/are correct?
Answer: Only 1 and 2
Notes: Statements 1 and 2 are correct: PACS are indeed the smallest co-operative credit institutions in India and are registered under the Co-operative Societies Act. However, statement 3 is incorrect as PACS are not regulated exclusively by State Cooperative Banks; they operate at the grassroots level and are also overseen by higher agencies like District and State Cooperative Banks and RBI.