The use of Information and Communication Technology (ICT) in local governance and public service delivery systems has added a new dimension in the recent times. In West Bengal, processes of decentralisation and institutional issues were assisted by special projects like SRD (Strengthening Rural Decentralisation) and ISGP (Institutional Strengthening of Gram Panchayats) respectively supported by DFID (2005-2011) and World Bank (2011-ongoing). Emphasis on GIS based monitoring of decentralised planning process, tracking key services provided by Gram Panchayats, use of GPMS (Gram Panchayat Management System) software for administrative and financial management are few of these key measures which rely on the use of ICTs in the local governance system. Apart from that, Ministry of Panchayati Raj has issued several guidelines on use of uniform portal like e-Gramswaraj for uploading Gram Panchayat Development Plans online. It is widely believed that issues like accountability and transparency can be ensured in the institutions of Gram Panchayats with advent of such measures. In this article we will analyse the effectiveness of ICT in bringing transparency and strengthen institutional accountability in the Gram Panchayats. Four Gram Panchayats in the District of Birbhumwere selected to understand how the effective implementation of ICT measures impact on the overall institutional strengthening of Gram Panchayats. For the purpose and the rigour of the study the GPs were selected on the basis of identified socio-economic and other important methodological indicators. Elected Representatives and local residents were selected as respondents. Gram Panchayats were visited for this purpose. For the collection of data structured questionnaire, personal interview, FGDs and case study methods were also used.The finding shows that the role of ICTs in the rural local governance process is limited. The administrative practices, monitoring of planning cycle, GPs financial management has improved undoubtedly but it is not a panacea as viewed by some experts. The study argues that limited involvement of the local residents in the process with low attendance in Gram Sabha and Gram Sansads meetings cannot be compensated with the modern technologies.