RBS took over ABN Amro in India some time back. They were hoping that the merger with HSBC India would be approved by the RBI, but that isn't happening any time soon.
Since March, NetBanking was disabled for making payments, and customers had to use their Debit Card instead (sometimes having 2%+ penalty).
Apparently, that option will be closed on 31st May, which means that RBS customers will NOT be able to do any electronic payments at all. There is an exception, of course, for customers with their credit cards. Which is not many people, since they pulled out of that business during the financial crisis.
The justification? Too much phishing.
As a security guy, I am a bit surprised... why not instead implement... ahem... effective security measures? Maybe they could just give a phone call to their HQ in the UK and ask them 'How are you guys doing it?'
Instead, someone somewhere said something like 'Meh, why spend money on protecting our customers? Lets just shut down the whole thing instead.'
This is funny in many ways... the RBI wants to limit how much foreign banks can do in India, in order to protect its own banking sector. Yet, we're seeing a foreign bank having worse offerings than many local banks.
After stopping issuing credit cards in 2009, stopping online transactions in 2011, I think we can predict RBS India to shut down its operations in 2013.