 This principle remained an informal arrangement until it was enacted into law in 1964.At the same time, the increasing asset base of the savings banks prompted the Finance Ministry to start regulating the sources and applications of their funds.As a result, the Finance Ministry directed a growing proportion of the assets of savings banks to finance public debentures and private banks' short-term liabilities, with the added result that the policy significantly reduced funds available for agricultural projects and other traditional lending activities.