The Union Panchayati Raj Ministry has developed software to maintain database of bank accounts of all Panchayati Raj Institutions (PRIs) to transfer the funds through electronic banking channels. Once the data is entered, the money would be transferred directly to the2,40,000 PRIs from the State's Consolidate Fund.
Karnataka State Government has already implemented the system using the fast expanding electronic network of banks to transfer funds from the State to individual panchayats. The State government has arranged six nationalised and 12 gramin banks, in which all 5,800 panchayats at all levels hold accounts. The Finance Ministry is willing to work with the Panchayati Raj Ministry for developing a consensus on adoption of this tool kit across Central ministries and State Governments. The Union Finance Ministry has also mandated that these funds would be transferred into 15 days of their being credited to State Consolidated Fund.