HM Revenue and Customs (HMRC) has awarded contracts to Citibank N.A. and Royal Bank of Scotland Group PLC to provide clearing bank services to the Department (including the Office of HM Paymaster General), and National Savings and Investments (NS&I). These services are currently provided by the Bank of England (“the Bank”). The Bank announced in July 2004 that it would withdraw from the provision of retail banking and clearing services to its commercial customers including Government Departments, building societies and other corporate customers.

Award of the contracts follows a procurement exercise as announced in the Official Journal of the European Union in July 2005.

The contracts are for five years with the option to extend on an annual basis for a further two years. Migration to the new banking suppliers will start later this year and is scheduled for completion by the end of 2009.