Royal Bank of Scotland, the UK-headquartered financial services group, has begun shutting down 23 of its 31 branches in India as part of efforts to consolidate its retail and commercial banking operations in the country.

The cleanup will have no impact on RBS' corporate and institutional businesses, nor will it affect the private banking operations, the company said. The eight remaining branches will provide the firm's core competencies: financing, risk management, wholesale and investment banking, cash and payments, trade finance and a range of wealth management services.

The branches are located in the Delhi-National Capital Region, Mumbai, Kolkata, Pune, Bangalore, Chennai, Hyderabad and Vadodara. RBS will be giving notice to customers of banks that are closing shop and will make alternative arrangements if needed.

"We are a relationship-driven organisation and will ensure the smoothest possible transition for our customers, as well as employees affected by this consolidation. The decision to reduce the geographic footprint of our franchise does not change the RBS Group's commitment to the Indian market -- and we continue to invest in India," said Brijesh Mehra, managing director and country  head for international banking at RBS India, in a statement.

RBS had previously planned on selling its 23 branches to HSBC, but the Reserve Bank of India objected citing foreign ownership restrictions. In November 2012, after two years of talks, the two banks finally decided not to push through. Other banks had offered to acquire the UK bank's assets but no deal was ever reached.