The Broughty Ferry branch of RBS will close later this year.
It is one of several branches being closed by the bank across the UK.
RBS said transactions for personal customers had dropped by more than 50% between January 2019 and January this year.
It also said 68% of personal customers using the branch also used digital banking, or the RBS app.
The Brook Street branch will close on November 2. The number of jobs affected is not known.
The decision comes just weeks after Bank of Scotland announced it was shutting five branches across Tayside and FIfe.
It also follows the closure of a Virgin Money branch in Broughty Ferry.
Banks accused of putting ‘pockets before people’
Broughty Ferry councillor Pete Shears accused the bank of putting “pockets before people”.
He said: “I just think it stinks of banks once again prioritising every penny of profit they can make, while disregarding the role local branches play in communities, especially for our elderly and vulnerable citizens.
“RBS wouldn’t have survived were it not for a £45 billion bailout using taxpayer money..
“It’s not a problem specific to RBS, all banks are putting their pockets before people.”
He urged RBS to re-think its decision.
Mr Shears added: “We all know how frustrating phoning a bank can be, and an email giving justification that there is a bank in the city centre – a very long trek for those with mobility issues – just doesn’t cut it.
“RBS should reverse their closure immediately and stop letting down communities.”
RBS ‘turning its back on’ Broughty Ferry
Councillor Craig Duncan said the news had come as a “bolt from the blue”.
He added: “There has been no consultation about this to the best of my knowledge.
“I’m quite astonished at that. I am disappointed because I think that bank has done well over a number of years.
“They appear to be prepared to turn their back on Broughty Ferry.
“There is a sizeable elderly population and they simply don’t do things like online banking. It’s easy to say people can go up the road to Dundee, but not everyone has a car, and it is a hassle.
“This is a body blow to the local economy.”
RBS closure a blow to local businesses
Another local councillor, Kevin Cordell, said he has written to the bank to express his disappointment.
The SNP member said: “I know banking habits change and a lot of business is done online, but bank branches are still a vital service.
“It was very disappointing. I’ve written to them to find out how they’re going to manage that transition.
“It’s less convenient if you’re going to have to do more stuff online because there are parts of the community who just don’t engage in that online world. They like to do things in person.”
Mr Cordell said the closure could be a blow to local firms.
He added: “If people are not coming into the Ferry, there could be a knock-on to businesses. That social inclusion part will also be affected.”
That view was echoed by Conservative Dundee city councillor for The Ferry Derek Scott. .
He said: “Many people still like face to face banking and none of the alternatives are a substitute for the convenience of being able to pop into a local branch.
“I am particularly concerned about the impact the closure will have on vulnerable customers and local businesses.
“I will be contacting RBS regarding its decision.
RBS providing ‘support and alternatives’
The nearest RBS branch for customers affected is on Dundee High Street.
An RBS spokesperson said: “As with many industries, most of our customers are shifting to mobile and online banking because it’s faster and easier for people to manage their financial lives.
“We understand and recognise that digital solutions aren’t right for everyone or every situation.
“When we close branches we have to make sure that no one is left behind.
“We take our responsibility seriously to support the people who face challenges in moving online.
“We are investing to provide them with support and alternatives that work for them.”
