Those banking with RBS, as well as NatWest and Ulster Bank, faced up to a fortnight of disruption as a new software upgrade took place, leading to many accounts not updating properly.

This morning’s compensation announcement has added to RBS’ recent woes. The bank posted a half-year loss of around £1.5bn, compared to £794m at the same time in 2011. This follows the bank being charged £3bn for changing the valuation of their debt.

RBS has however now paid back all £163bn in emergency loans it received from the UK and US governments.

Chief Executive Stephen Hester said in a statement, "We have continued to make the bank safer and stronger as we clean up problems of the past.

"And despite the tougher economy, these results show our ongoing businesses to be more resilient than before, with many further improvements underway."

The bank added that it is continuing to cut costs to improve their standing, as well as dismissing a number of their traders who may have been involved in the Libor rate-fixing. Mr Hester claimed that the banking industry needed to change its mindset to better serve their customers.