RBS has ring-fenced £125 million to correct the IT outage that affected customers for two week.

The failure was traced to a failed software upgrade which affected millions of RBS users.

A statement released by RBS , said: "A charge of £125 million has been accrued in Q2 2012 in relation to the costs of this incident, principally covering redress to the Group's customers. Additional costs may arise once all redress and business disruption items are clear”.