Under this scheme each ministry/ department has been allotted a specific public sector bank for handling its transactions based on the principle of 'one bank - one ministry/department'. Hence, the Reserve Bank does not handle government's day-to-day transactions as before, except where the Bank itself has been nominated as banker to a particular ministry/department.
The European Commission’s forthcoming study on the divergences in the insolvency frameworks for banks under different national laws is thus welcome. ix However, in the present circumstances we are not in a position to move immediately towards the full harmonisation of EU banks’ liquidation regimes.