Redemption - US Pref B & C

Royal Bank of Scotland Group PLC
30 December 2002

REDEMPTION OF NON-CUMULATIVE US DOLLAR PREFERENCE SHARES

London/New York - December 30, 2001 - The Royal Bank of Scotland Group plc gives
notice that it will redeem on January 30, 2003 all the non-cumulative US dollar
preference shares Series B (NYSE: RBSPRB) and Series C (NYSE: RBSPRC) listed in
American Depositary Receipt ('ADR') form.

The redemption details, are shown below:

US dollar                Redemption amount per     Accrued dividends per  Coupon
non-cumulative           share (US$)               share (US$)
preference shares

Series B                 25.00                     0.21                   11.2%

Series C                 25.00                     0.178125                9.5%


The aggregate value of each non-cumulative preference share series, all of which
are being redeemed on January 30, 2003, is as follows:

US dollar                Aggregate value (US$)
non-cumulative
preference shares

Series B                 200,000,000

Series C                 400,000,000

    Total                600,000,000
    


A notice of redemption is being sent to the holders of the ADRs representing
Series B and Series C non-cumulative dollar preference shares by The Bank of New
York, the ADS depositary and paying agent.

Depositary and Paying Agent

The Bank of New York

101 Barclay Street

Floor 21 East

New York, N.Y. 10286

212-815-8389


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