RBS extends account switching incentives due to COVID-19 slowdown

FILE PHOTO: Royal Bank of Scotland signs are seen at a branch of the bank, in London, Britain December 1, 2017. REUTERS/Peter Nicholls/File Photo

LONDON (Reuters) - Royal Bank of Scotland RBS.L said on Tuesday it would give business customers another six months to take advantage of incentives to switch their accounts to other banks, under terms of the bank's crisis-era state aid package.

“As a result of the on-going COVID-19 pandemic, fewer customers have been switching under the Incentivised Switching Scheme and these changes are being announced by the Banking Competition Remedies to preserve momentum and aims of the ISS,” RBS said.

Some 200,000 additional RBS and NatWest plc business banking customers with turnover of up to 1 million pounds will have the opportunity to participate from August 25.

Customers will be able apply to switch their account until February 28 2021 and will have until June 30 2021 to complete the switch.

RBS said the total number of customers targeted to switch under the scheme would not change and the amendments would therefore have no material impact on its current financial outlook.

The ISS will terminate at the point the 225 million poundsfund for business current account switching has been distributed by BCR, which may be earlier than the dates above, RBS said.

Reporting By Sinead Cruise; Editing by Dhara Ranasinghe