NatWest has reversed its decision to close the UK bank accounts of the Kremlin-backed news channel RT, formerly known as Russia Today.

The bank wrote to the company that provides RT services in the UK last October, saying it would no longer provide banking services following a review and the decision was final.

However, in a statement on Monday evening, NatWest said it had reached a resolution with RT. A spokesman for RBS Group, the bank’s parent company, which is largely owned by the British state, said: “When issues arise, we will always try to work with our customers to seek the best possible outcome, and are pleased we have been able to do so in this case.”

In a statement, RT said the bank had told it that although NatWest had “followed its process correctly”, it was happy to have been “able to agree a way forward after further discussions with you”.

The decision to close the accounts prompted accusations of censorship, with Russian officials alleging that it “reeked of” the BBC and threatening retaliation against the UK broadcaster.

NatWest has not said why it decided to close the accounts, but it is understood that the bank’s compliance department has closed down the accounts of Russian customers in the past without explanation.

Speculation about why the decision was made initially led to the Treasury denying involvement. There was not thought to have been any official consultation with the government.

RT’s editor-in-chief, Margarita Simonyan, said: “Common sense has finally prevailed. Thank you all for your support.”

Although NatWest’s decision appeared to have been unrelated to the content broadcast by RT, the channel has been repeatedly criticised by UK regulators for producing biased coverage. Since it started broadcasting in the UK about 10 years ago, Ofcom has recorded 13 breaches of broadcasting rules.