Call for banking guarantee from RBS

The Scottish Government is calling on RBS to provide a minimum level of banking services after they proposed a series of branch closures.

Paul Wheelhouse, the Minister for Business, Innovation and Energy, has urged the UK Government to take steps to ensure communities have access to day-to-day banking services.

Mr Wheelhouse has written to Economic Secretary to the Treasury Stephen Barclay about the branch closures which were announced on Friday.

In the letter he said: ''I am deeply concerned at the Royal Bank of Scotland's announcement that they are to make further deep and damaging cuts to their branch network in Scotland.

I am sure that you will also have concern at the rate of branch closures at RBS, and NatWest. Scotland is proud of its banking heritage and has done much to build the industry globally and RBS has grown due to its ability to rely upon a loyal customer base here, through good times and bad.''

He said the announcement of a further 62 branch closures would leave many communities without ready access to essential day-to-day banking services and is a genuine ''body blow to our high streets''.

The cuts, he said, would affect some of the most remote rural communities and market towns, with the worst impact felt by vulnerable customers and small businesses.

Ahead of a meeting between the two governments expected on Monday, Mr Wheelhouse wrote: ''I call on the UK Government to establish and enforce a guaranteed minimum level of service provision for essential banking services, recognising the importance of continued access to banking for communities across Scotland, and across the UK.''

He added: ''The UK Government, as the bank's majority shareholder, in our view, should use its influence through not agreeing to any closures in locations where no face-to-face alternatives are in place, and should require the Royal Bank of Scotland to ensure that practical and sustainable alternative banking services are put in place before any closures are signed off.''

A Treasury spokeswoman said: ''The decision to open and close branches is a commercial decision taken by the management team of each bank.

The Government does not intervene in these decisions. But we understand the impact that closures can have on communities and people's jobs.

Banks must now give customers as much notice as possible when a branch is closing, and ensure they are made aware of the options they have locally to continue to access banking services.''