PR Amendment Bill passed to enable GPs deposit/draw funds in banks, post offices

The Telangana Legislative Assembly has approved the Telangana Panchayat Raj (Fourth Amendment) Bill 2026 by voice vote on Thursday, allowing Gram Panchayats to deposit allocated funds in nationalized and cooperative banks and post offices. Minister for Panchayat Raj, D. Seethakka, explained that this amendment was introduced by the previous BRS government and has made it difficult for village-level local bodies to withdraw funds sanctioned by the Central and State governments. As a result, even minor maintenance tasks have become challenging.

During the discussion, BJP representative P. Harish Babu highlighted that the Central government had sanctioned ₹14,100 crore to Gram Panchayats in Telangana for 2025-26, and ₹1,000 crore had been released in 2026-27. He criticized the delay in releasing matching grants, which is hindering village development. He requested the state government to allocate funds for maintaining Rythu Vedika buildings used for various village-level government programs.

Ch. Vijayaramana Rao, Ch. Vamshi Krishna, K. Shankaraiah, and T. Rammohan Reddy (all Congress) and Payal Shankar (BJP) and Kausar Mohiuddin (AIMIM) also took part in the discussion.

Congress member Ch. Shankar raised concerns about the need for roads or ways to farm fields in villages to facilitate farmers in transporting their produce and farm equipment. The Speaker of the Legislative Assembly emphasized that approving the Bill would enable panchayats to access the Panchayat Raj Own Resources Fund with Gram Sabha resolution.