The Telangana government introduced the Telangana Panchayat Raj (Fourth Amendment) Bill, 2026, in the Legislative Assembly on Wednesday, proposing to allow gram panchayats to keep their funds in banks and post offices instead of depositing them in the state government treasury.
The bill, introduced by Panchayat Raj and Rural Development Minister Seethakka, seeks to amend Section 70(3) of the Telangana Panchayat Raj Act, 2018. The proposed change would permit gram panchayats to hold locally generated revenue in nearby nationalised banks, cooperative banks or post offices.
Under the existing system described in the bill, revenue collected by gram panchayats is deposited in the state government treasury. The government said this arrangement can restrict the immediate access of local bodies to their own funds, particularly in remote rural areas.
The proposed amendment is intended to give panchayats faster access to revenue for development and essential works. According to the government, sarpanches and panchayat bodies would be able to use locally generated funds without delays associated with the treasury system.
The measure concerns the financial management of gram panchayats, which are the local bodies responsible for administering village-level development and civic works. If enacted, the amendment would change where panchayat funds are maintained, while the bill’s stated objective is to make those funds more accessible to local authorities.
The government said the proposed banking and post-office arrangements would allow funds to be kept closer to the panchayats, including in areas where access to the state treasury system may involve additional delays. The report did not specify the types of accounts, operating controls or procedures that would apply if the bill becomes law.
The bill follows a decision taken by the Telangana Cabinet on July 17 to change the provisions governing the management of gram panchayat funds. Its introduction in the Assembly is the next stated step in the legislative process. The report does not indicate whether the Assembly has passed the bill or when it will be taken up for further consideration.
