Telangana allows Gram Panchayats to deposit own revenue directly into bank accounts

The Telangana government has notified the implementation of the Telangana Panchayat Raj (Fourth Amendment) Act, 2026, allowing Gram Panchayats to deposit revenue generated from their own sources directly into their bank accounts.

Hyderabad: The State government has issued orders to implement a legislative amendment allowing Gram Panchayats to deposit revenue generated from their own sources directly into their respective bank accounts.

The funds will no longer have to be routed through the government treasury. On Friday, the Department of Panchayat Raj and Rural Development issued GO Ms. No. 43, bringing the Telangana Panchayat Raj (Fourth Amendment) Act, 2026, into effect from October 9, 2026.

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Previously, Gram Panchayats had to route their own-source revenue through the government treasury. This often delayed access to funds needed for essential development works in villages.

As a result, Gram Panchayats frequently faced difficulties in addressing urgent local needs, including sanitation, drinking water, street lighting, road maintenance and other basic requirements.

The government introduced the legislative amendment to enable Gram Panchayats to use their own revenue more quickly to meet local needs. With the funds now being deposited directly into their bank accounts, Gram Panchayats will be able to access and utilise the revenue promptly. This is expected to speed up development projects and infrastructure creation in villages, officials said.