The Scottish Secretary will confront the Royal Bank of Scotland over branch closures in Fife after being pressured in the House of Commons.
Kirkcaldy and Cowdenbeath SNP MP Roger Mullin used the first Scottish questions of the new Parliament to quiz David Mundell about the banking giants plans to quit towns in the constituency.
He said: “RBS has announced the closure of branches in Kelty and in Aberdour, a further sign of withdrawal from the banking sector that should be supporting small and medium-sized enterprises and communities.
“What is the right honourable gentleman’s view of the retail banking sector in Scotland? Has he had discussions with the Chancellor about creating challenger banks out of RBS?”
Mr Mundell initially replied by joking the question was “momentous” because it was the first time an MP representing the area had spoken at Scottish questions a jibe at former Prime Minister Gordon Brown.
He then added: “I share the honourable gentleman’s concern about RBS’s approach to branch closures, its commitment to smaller communities and its breach of a commitment not to be the last branch to leave a community.
“I will certainly take up with RBS the issues he has raised.”
Both the SNP and Labour’s shadow Scottish secretary Ian Murray pressed the UK Government on planned welfare cuts and the impact they would have on the most vulnerable in society.
Meanwhile, David Cameron hinted heavily during Prime Minister’s Questions that he would be prepared to hold an EU referendum on the same day as next May’s Holyrood election.
Acting Labour leader Harriet Harman urged the Conservative leader to avoid such a clash.
He responded: “My view is that the timing of the referendum should be determined by the timing of the renegotiation – when the renegotiation is complete, we set a date for the referendum. I do not think it should be determined by the timing of other elections.
“For instance, it was possible to have the AV referendum and other elections on the same day. I think people are capable of making two decisions.”