British government majority owned lender Royal Bank of Scotland (RBS) is all set to wind down its retail and commercial operations in India, in a move to strengthen its home operations and deal with regulatory pressures.
The winding down of operations will lead to elimination of jobs; however the lender did not disclose that how many employees will be affected.
The announcement comes at a time when the UK Prime Minister David Cameron suggested that state-controlled bank should speed up their reorganization process.
It is expected that the closure of retail and commercial operations will not affect its international banking and private banking businesses in the country.
In November last year, the lender’s plans to dispose of Indian businesses to HSBC fell apart, after two years of extensive negotiations.
RBS is offloading its offshore operations in order to pile up required capital to meet regulatory requirements and returned taxpayers money, which it received during the financial crisis of 2008.