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I want to give permission / access to group of users. Within the group, all users should be able to view/edit each other's records, but not from the other team. The object in question is set to private at org level. How can I achieve this requirement?

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You can create two different Public Groups (one for each team), and put all the users you wish to segregate in one of those roles.

Then, using Sharing Rules, you can give each Public Groups R/W access to records owned by each team member.

If you need hierarchical access (i.e.: there is a manager that needs to see both groups's records) then I recommend using Roles instead of Public Groups

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Believe you're looking for sharing rules and public groups.

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