Banking Competition Remedies Ltd said that after appointing its final executive director and other staff - a process that had prevented applications for the grants from opening - it was now operationally ready to implement the scheme.

The grants, which make up two separate funds for RBS's smaller rivals, are intended to spur competition in the sector. RBS is footing the bill following its 45.5 billion pound bailout during the financial crisis, seen as an unfair boost to the lender.

(Reporting by Emma Rumney, Editing by Lawrence White)