I was bullied, by staff members, at my primary school because I'm English. There were highly inappropriate comments made on my school record, and I was negatively treated. In the end, I left primary school early because of it and an investigation was launched by the education authority. The result was my record being cleaned of all inappropriate comment, the head teacher of the school (who was editing my record) formally apologising for her actions and accepted all blame and guilt.
So yes, it still exists and goes much further than 'banter'.
Though that being said, you get ***** in all walks of life. Overall, I have a very positive image of Scottish people and think that in particular Glaswegians are amongst the friendliest people you'll meet. Aberdonians however, are horrible people.
It's a bit weird for me, as English people think I'm Scottish and Scottish people think I'm English. *Shrugs*.