Business Secretary Vince Cable would not be drawn on whether the government should reject any attempt by RBS to exceed the EU bonus cap but urged the bank to "show restraint", during an interview with ITV News.
He told Deputy Political Editor Chris Ship that the bank, which is 81% owned by the taxpayer, had not so far come forward with any propositions on bankers' bonuses.
Under EU laws, a bonus awarded to a banker that is over double their annual salary has to be approved by shareholders.
As Chancellor, Mr Osborne is effectively the bank's main shareholder.
More top news
Austin Powers star Verne Troyer has died aged 49, his official social media accounts have confirmed.The diminutive US actor, best known for
Commons Business Committee warns exports will be hit and prices will rise if Britain reverts to WTO rules.
The Labour leader accused the PM of setting a ‘deliberately unreachable bar’ for migrants.