According to This is Money, the Conservative-Liberal Democrat alliance is to limit the financier to paying additional sums of a maximum of Â£2,000 on top of the basic salaries of individuals working in this area of its business.
Last week, RBS revealed its plans to cut 3,500 jobs in its investment arm as it seeks to restructure and streamline following the recession and ahead of regulatory changes in the banking industry.
And the administration is determined to stop the company dishing out large cash bonuses to those still working there.
In 2011, the total amount distributed in extras to staff in this sector of RBS's business was Â£950 million, but the Treasury wants to reduce this to a maximum of Â£500 million in 2012.
By Gary Cooper