Unite, the union representing staff at RBS, expresses anger that large bonuses would continue despite huge losses:
"It beggars belief that this 84% taxpayer backed institution is imposing a pay cut on its hard working frontline staff, while continuing to pay the city bankers ridiculously large bonuses.
"This hypocrisy will infuriate the workforce, who have continued to work under the hardest of conditions. Instead of walking away from pay talks RBS should be reconsidering its derisory pay offer.
"Unite is now asking its members whether they can accept the deal and are seeking members views on the proposal.
"How does RBS expect staff to accept its claims of poverty and this ludicrous pay offer, when there is clearly enough money flowing into the hands of its top bankers and traders?"