ROYAL Bank of Scotland chief executive Ross McEwan has revealed he has personally reviewed all its proposed branch closures and defended the controversial programme as a necessary response to the challenges posed by dramatic changes in consumer behaviour.

The taxpayer-backed lender came under repeated attack for its branch closure programme at its general meeting in Edinburgh.

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In December RBS announced plans to close a further 62 branches in Scotland before giving 10 a stay of execution. The closures would leave Scotland with less than 100 branches.

However, Mr McEwan said all the proposed closures followed a very thorough analysis.

“I myself went through it twice on all the branch closures,” he told the meeting.

This was held days after a report published by the Scottish Affairs Committee at Westminster said RBS had singularly failed to appreciate the damage its closure programme would inflict on many communities across Scotland.

Asked if RBS would halt the closure in light of the report, Mr McEwan said RBS was aware of the changes the closures would impose on communities.

He added: “We’re also aware of the change in behaviour which has been dramatic, much more dramatic than I would have thought would happen in a short period of time.

“I’m convinced that if we as a bank don’t respond but put in place other alternative actions … the bank will continue to have difficulties.”

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Mr McEwan told the meeting RBS has seen branch transactions fall by 36 per cent since 2014, with cheque usage down 39%. Total payment volumes increased by 5% with all the growth coming from digital platforms.

“Having bricks and mortar in a world that’s going more and more digital will be problematic but we have thought about the ramifications on vulnerable customers,” said Mr McEwan.

He noted mobile branches operated by RBS call at 440 places in Scotland, while customers can complete tasks such as paying in cash and cheques at 1400 post offices.

Royal Bank’s chairman Howard Davies defended the plan to close 162 branches in England and Wales, which was announced this month.

He said the closures were linked to moves RBS is making to address EU regulators’ concerns about the £45 billion bail out the bank received from the government in 2008. This came after the rapid expansion programme led by former chief executive Fred Goodwin backfired.

RBS has agreed to encourage small business customers to transfer to other banks after hitting obstacles in an attempt to offload the Williams & Glyn business, which cost it £1.8bn.

Mr Davies said it was not possible for RBS to keep branches open if it was required to transfer the customers concerned.

He defended the board’s response to the mistreatment of small business customers at the hand of its now defunct turnaround unit, Global Restructuring Group.

Mr Davies noted a report for the Financial Conduct Authority released earlier this ear had made very difficult reading and highlighted the many areas RBS could have done better for customers.

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“We have apologised for these mistakes and taken steps to put them right,” said Mr Davies.

He said RBS had made good progress last year, when the bank reported a £792m bottom line profit its first for 10 years, and addressed a range of legacy issues.

This included agreeing a £200m settlement following action regarding a £12bn rights issue it completed in 2008, without admitting liability.

Some shareholders complained many small investors had not received any compensation for the losses they suffered after the bank’s share price plunged subsequently.

Mr Davies said RBS welcomed last year’s announcement by the Treasury that it will restart the privatisation process by March next year.

There have been reports the Government plans to sell £3bn shares soon.

But outgoing chief financial officer Ewen Stephenson officer told reporters: “When you look at what's been happening in the markets in the last few days with Spain and Italy and a significant sell-off in bank stocks, I would be surprised if now is an optimum time to sell stocks.”

RBS said yesterday that Mr Stephenson had resigned after four years in post to take up another opportunity.

A resolution to direct the board to establish a shareholder committee was opposed by 98.65% of votes cast at the meeting.