Telangana directs Gram Panchayats to open separate bank accounts for own revenue

Telangana Panchayat Raj and Rural Development department announced banks designated for Gram Panchayats across the State. The image is used for representative purposes only.

The Telangana government has initiated steps to enable gram panchayats to manage their own revenue through dedicated bank accounts, with the Panchayat Raj Department directing all District Panchayat Officers (DPOs) to ensure the opening of separate zero-balance savings accounts for gram panchayats across the State.

The move follows an amendment to Section 70(3) of the Telangana Panchayat Raj Act, 2018, through the Telangana Panchayat Raj (Fourth Amendment) Act, 2026. The government issued orders recently notifying October 9, 2026, as the date of commencement of the amendment.

Commissioner of Panchayat Raj and Rural Employment Divya Devarajan instructed DPOs to facilitate the opening of dedicated accounts for all receipts and expenditure relating to the Own Source Revenue (OSR) of gram panchayats.

The accounts will be opened in the name of ‘OSR Account – [Gram Panchayat Name]’ at designated branches of the State Bank of India (SBI) and Union Bank of India (UBI).

The department has announced designated SBI branches for gram panchayats in 15 districts, including Mahbubnagar, Nagarkurnool, Narayanpet, Sangareddy, Siddipet, Nalgonda, Suryapet, Khammam, Rangareddy and Vikarabad.

UBI branches were assigned to 16 districts, including Adilabad, Nirmal, Karimnagar, Nizamabad, Kamareddy, Hanumakonda, Warangal, Mulugu, Jangaon and Mahabubabad.

The Commissioner said the banks were already requested to issue instructions to their branches to facilitate the opening and configuration of the accounts on a priority basis. The memorandum specified that the accounts should be used exclusively for receipts and expenditure under the Gram Panchayats own revenue sources.

Under the amended provision, all funds received by Gram Panchayats, including those under Central and State government schemes, must be deposited promptly in the nearest nationalised bank, cooperative bank or post office in the prescribed manner. Earlier, Gram Panchayats were required to route their own-source revenue through the government treasury.