Hyderabad, Dec.23 (RAHNUMA): The government has issued revised instructions for opening new dedicated bank accounts for the newly formed Gram Panchayats and Mandal Parishads in Telangana to facilitate the 15th Finance Commission (XV-FC) grants and State Matching Grants.
As per guidelines issued by the Ministry of Finance, Department of Expenditure, all XV-FC grants must be processed through PFMS and the e-Gram Swaraj portal, with no manual payments permitted.
The key instructions included:
– Mandatory resolution in Gram Sabha / General Body Meeting for opening dedicated accounts
– Accounts must be opened in the name of the GP or Mandal Parishad only
– LGD code mapping and e-Gram Swaraj registration compulsory
– Single dedicated bank account for XV-FC grants; no mixing with other scheme funds
– Payments to be made only through digital approvals using DSCs
– Two-tier authorization system involving officials and elected representatives
– Vendors must be registered on the PFMS portal
Similar provisions apply for State Matching Grants requiring a ‘separate dedicated account’. Funds from other schemes (like MGNREGA or State grants) cannot be mixed into this account.
The revised guidelines aim to ensure transparent, digital and accountable fund flow to rural local bodies.
