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RBS plan for 200% bonuses blocked by Treasury body

Royal Bank of Scotland has abandoned attempts to pay bonuses twice the size of salaries after being told the move would not be approved.

UKFI, the body that manages the Treasury's 81% stake in the bank, told RBS it would veto plans for a 2:1 bonus ratio at the next shareholder meeting.

"There will be no rise" while RBS is "still in recovery", the Treasury said.

Kamal Ahmed reports.

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