The government this week announced that it would inject another £33.5bn into RBS, taking its stake in the troubled bank to 84%. It is already 70% owned by the taxpayer.
As part of that, RBS and fellow bailed-out bank Lloyds have also agreed to increase lending to businesses and property owners by a total of £39bn.
"We have reconfirmed the lending commitments with RBS and Lloyds this week," a Treasury spokesman said. "They will not be changing and they are binding."
The spokesman added that a clause was put into contracts with RBS in February acknowledging that demand for lending might not increase as businesses sought to pay off existing debts.
"Indications remain that it is unlikely that RBS's net business lending will increase by the £16bn that we are making available, in the light of the subdued demand we currently experience," the bank said.
RBS has said that customers do not want its loans
It added that was "notwithstanding the group's willingness to lend to creditworthy customers and our clarity that the requisite funds are available".
RBS on Friday reported a pre-tax loss of £2.2bn for the period July to September 2009, compared with a profit of £1.9bn in the same period last year.
The bank also plans to put £282bn of its assets into the government's insurance scheme for toxic assets.
This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.