THE HEAD of RBS has insisted it is not possible to hold back a shift in the way people bank as he defended branch closures.

RBS chief executive Ross McEwan has said that we are heading towards a cashless society and claims in Scotland less one in four of the population now chooses cash as their preferred method of paying for things.

The bank chief, who is facing renewed criticism for branch closures, said: "We can't hold back the tide of change.

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"Across the UK last year, cash payments represented around 40 per cent of transactions, and just 15 per cent of the value. We are moving to a less-cash society."

It comes as a report from the Commons Scottish affairs committee says RBS has failed to appreciate the damage its decision to close 62 branches will inflict on many communities across Scotland.

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Pete Wishart, the committee chairman, said: "The loss of a permanent bank, and the services it provides, cannot be replicated by the occasional visit of a mobile bank or community banker."

But Mr McEwan said: "I have a great affinity with hard currency but it's because of the customer benefits of contactless and digital payments that are overtaking traditional notes and coins and have replaced the majority of in-branch transactions.

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"Change can be difficult, but with new banking services, customers are voting with their feet and adopting them in droves. Cash has long been king and will always have its place, but today we have a more diverse, safer and convenient range of payment options than ever before."

He added: From Amazon to John Lewis, car to council tax, supermarkets to the bus or train, the way we choose to pay is going in just one direction: more digital and increasingly less cash.

"I see these changes as incredible improvements in banking and payment services. Many small businesses in Scotland tell me this is revolutionary for them, too; less cashhandling means more time can be focused on running and growing their business."