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Telangana mandates separate bank accounts for Gram Panchayat revenue
The Telangana government has directed all Gram Panchayats across its 31 districts to open dedicated zero-balance savings accounts for managing their own revenue. The accounts will be established at State Bank of India and Union Bank of India branches.
LSN India ·
Telangana's administration has issued a directive requiring every Gram Panchayat in the state to establish separate bank accounts exclusively for handling their generated revenue. This move aims to improve financial transparency and accountability at the grassroots level of governance.
The zero-balance savings accounts will be opened at branches of State Bank of India and Union Bank of India spread across all 31 districts of the state. The initiative ensures that local bodies can manage their finances independently while maintaining clear records of income and expenditure.
The directive underscores the state government's focus on strengthening decentralized administration and enabling Gram Panchayats to exercise greater financial autonomy. By maintaining dedicated accounts, these local institutions will have a clearer audit trail and can better track revenue generation from local sources such as taxes and fees.
This financial segregation is expected to facilitate better fund management and help Gram Panchayats plan their development activities more effectively. The zero-balance requirement ensures that smaller panchayats facing cash flow constraints are not burdened with minimum balance obligations.