RBS is instead making "a modest contribution of £10 per head" towards any Christmas meals staff arranged between themselves, a spokeswoman for the bank told C&IT.
The bank was responding to national newspaper reports that it planned to hold "all-day drinking parties" over Christmas at its London headquarters.
RBS was heavily criticised in an article about its application to City of London council officials for a licence to allow alcohol to be served at its office from 7am, along with music, karaoke, DJs and cabaret entertainment.
But the bank said it was legally obliged to submit the application annually in order to continue hosting moderate receptions for important clients.
A statement from RBS said: ""This is a standard legal and process-driven licensing application. The reason we require this is to allow us to entertain our customers which we would always do in an entirely appropriate and considered manner."
A spokeswoman added that the licence might only cover two or three events held over the coming year and was not intended for Christmas parties.