<Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> <P> In India, the Panchayati Raj generally refers to the system of local self - government in India introduced by a constitutional amendment in 1992, although it is based upon the traditional panchayat system of South Asia . This Panchayati Raj system was formalized in 1992, following a study conducted by a number of Indian committees on various ways of implementing more decentralized administration . The modern Panchayati Raj and its Gram Panchayats are not to be confused with the extra-constitutional Khap Panchayats (or Caste Panchayats) found in northern India . </P> <P> In India, the Panchayati Raj now functions as a system of governance in which gram panchayats are the basic units of local administration . The system has three levels: Gram Panchayat (village level), Mandal Parishad or Block Samiti or Panchayat Samiti (block level), and Zila Parishad (district level). It was formalized in 1992 by the 73rd amendment to the Indian Constitution . Currently, the Panchayati Raj system exists in all states except Nagaland, Meghalaya, and Mizoram, and in all Union Territories except Delhi . </P> <P> The Panchayats receive funds from three sources: </P>

State in india has no panchayati raj institution