PR Amendment Bill passed to enable GPs deposit/draw funds in banks, post offices
The Telangana Legislative Assembly passed an amendment bill allowing Gram Panchayats to manage their funds through banks and post offices instead of the state treasury. The move aims to resolve liquidity issues that have hindered basic village maintenance work.
Why it matters
This legislative change addresses administrative bottlenecks that directly impact the delivery of essential services at the grassroots level.
The Legislative Assembly passed the Telangana Panchayat Raj (Fourth Amendment) Bill 2026 with a voice vote on Thursday, facilitating Gram Panchayats to deposit funds allocated to them in nationalised and cooperative banks and post offices, since withdrawing funds deposited in the Treasury was getting very difficult.
Minister for Panchayat Raj D. Seethakka said during the discussion on the Bill that the system of depositing panchayat funds in the Treasury was introduced by the previous BRS Government and since then the village-level local bodies were finding it difficult to withdraw funds sanctioned to them by the Central and State Governments. As a result, even taking up small maintenance works like changing fused street-lights had become difficult.
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