TSB is to close four Scottish branches while cutting hours at around 70 branches in Scotland later this year.
Two branches in Edinburgh, one in Aberdeen and one in the town of Keith in Moray will shut in July this year.
The reduced hours will see some branches go from a five-day-a-week service to as little as two days.
TSB say the hours cut is an alternative to pulling out of communities altogether.
Andrew McRae, the Federation of Small Businesses Scotland policy chairman said the move will reduced local footfall and hurt the vibrancy of many of our high streets
"It will make it more difficult to run a business, especially if you operate in our cash-dependent retail and hospitality industries," he said.
“UK ministers must stop sitting on their hands when it comes to bank branch closures and uncertainty over our ATM network. We need to see policymakers look at the impact of these sorts of closures on the economic health of local communities.”
READ MORE: Call for new regulator as Scotland is among hardest hit for banks and ATM closures
TSB said there would be no job losses through the changes with all staff in closing branches being offered roles in other offices.
The Edinburgh Haymarket TSB, one of the branches to be shut
The bank said it had an agreement with the Post Office, meaning personal and business banking customers are able to use their local branches to check their balance, make cash withdrawals and make cash and cheque deposits.
A statement to investors on their website TSB said: “In line with the Lending Standards Board Access to Banking Standards, we are conducting comprehensive reviews of the impact of any branch closure on the local community.
"We are taking great care to ensure our customers know what their options are and helping them with the change, including providing details on alternative banking options and offering special ‘get me started on digital’ meetings to help people get comfortable with new technology and any concerns they may have.”
The development comes as consumer groups call for a regulator who will protect access to cash as Scots consumers face the double blow of ATMs and banks closing at an "alarming" rate.
Figures show that the UK has seen cashpoints disappear at a rate of 488 per month between June and December last year - with over 250 free-to-use machines also closing monthly.
Meanwhile, 290 cashpoints have closed in Scotland in 2018, the majority of which were free-to-use machines (204).
The Aberdeen Holburn Street branch is also facing the axe
Scotland has seen 399 bank branches close since 2015, making it one of the worst affected areas in the UK.
The call for a regulator, supported by the Federation of Small Businesses, would mean new powers to prevent closures of banks or cashpoints when they have an impact on a local community. There would also be powers to ensure a cash machine remains open in areas where a bank branch has shut.
The branches to be axed are Aberdeen Holburn Street, Edinburgh Fountainbridge, Edinburgh Haymarket and Keith, which TSB says are no longer commercially viable.
TSB which has over 150 branches across Scotland said 70 per cent of people live within two miles of a TSB branch.
Carol Anderson, Scotland branch distribution director, said: “Having reviewed our branch network we have taken the very difficult decision to close four branches in Scotland.
"Customers are changing the way they interact with us and over the past few years we have seen the usage of branches continue to fall, with many customers in these locations increasingly using alternative TSB branches, online, mobile or telephone banking to access TSB banking services.
"These changes in usage mean we are reducing the opening hours of a further 72 branches to keep them commercially viable."
MSP David Stewart has called for the UK Government to take action to stem the flow of bank closures and the pattern of reduced banking hours following the announcement.
Mr Stewart, who represents the Highlands and Islands, which includes Moray, has been told that TSB is to close its Keith branch because “it is no longer financially viable due to lower footfall”.
The bank is also reducing the opening hours of eight branches in the region - Dunoon, Forres, Nairn, Wick, Tain, Thurso, Grantown-on-Spey and Dingwall. Customers will be receiving letters this week.
TSB says all eight have “reduced customer usage over time and low usage overall”.
“This is another body blow for rural areas which have already suffered from other banks closing and reducing their hours,” said Mr Stewart.
“I’ve written to TSB’s Chief Executive, Debbie Crosbie, to ask if Keith can be saved and to try to get some reassures that the other eight branches will not see closure in the future.
“While I understand that banking patterns have changed, branches provide a much-needed service and not everyone can use internet banking, especially where internet coverage is patchy, and where customers are wary of on-line systems.
“Businesses and tourists also need a High Street presence. TSB has said in order that branches are viable in the longer-term it needs to see customers choosing to bank at them, highlighting a use-it or lose-it message, especially for the Highlands.
The UK government has responsibility for banking and Mr Stewart believes more could be done to help maintain banks on our High Streets."
TSB last week unveiled a “fraud refund guarantee” to ensure its 5.2 million customers are reimbursed in full if they are an innocent victim of a scam.
The move – a first in the UK banking industry came after last April’s online IT banking fiasco, where thousands of customers were locked out of their TSB accounts which were then exploited by scammers.
Details of branches where TSB is reducing hours
Edinburgh & Borders Broxburn
Dunbar
Edinburgh, Morningside
Haddington
Hawick
Jedburgh
Kelso
North Berwick
Peebles
Portobello, Edinburgh
Fife & Central Scotland Aberfeldy
Anstruther
Blairgowrie
Bo'ness
Buckhaven
Burntisland
Coupar Angus
Crieff
Cupar
Kilsyth
Kinross
Pitlochry
Greater Glasgow Alexandria
Bearsden
Bishopbriggs
Carluke
Clarkston
Dumbarton
Glasgow, Anniesland
Glasgow, Pollok
Helensburgh
Lanark
Larkhall
Milngavie
Thornliebank
Uddingston
Wishaw
Highlands & Islands Dingwall
Forres
Grantown-on-Spey
Huntly
Insch
Nairn
Tain
Thurso
Turriff
Wick
North East Scotland Aberdeen, Kincorth
Aberdeen, Torry
Aboyne
Alford
Banchory
Brechin
Bucksburn
Carnoustie
Culter
Dundee, Craigiebank
Dundee, Lochee
Dyce
Montrose
South & West Scotland Barrhead
Castle Douglas
Cumnock
Dunoon
Girvan
Glasgow, Govan
Kilbirnie
Largs
Port Glasgow
Prestwick
Rothesay
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