As banker to the Government, Reserve Bank works out the overall funds position and sends daily advices showing the balances in its books, ways and means granted and investments made. The daily advices are followed up with monthly statements, and are useful from the point of view of enabling the Government to prepare their ways and means budgets.
The arrangement between the Government of India and the Reserve Bank on the one hand and the public sector banks and the Reserve Bank on the other, are based largely on trust as well as being merely contractual. BIS Review 22/2002  3  Treasury system All payments on account of Central and State Governments are made either by cheques or by bills.