UPDATE 1-UK to buy 30 bln stg shares in RBS, Lloyds -Telegraph

(Adds details of plans)

LONDON, Nov 2 (Reuters) - The UK government will unveil plans this week to spend 30 billion pounds ($49.3 billion) buying further shares of rescued banks Royal Bank of Scotland (RBS.L) and Lloyds (LLOY.L), The Daily Telegraph newspaper reported on Monday.

The UK newspaper said British Finance Minister Alistair Darling has agreed to spend about 25 billion pounds ($41 billion) on shares in part-nationalised RBS and 5.5 billion pounds ($9 billion) on shares in Lloyds in a move expected to be announced on Tuesday.

The government's stake in RBS would rise to 84 percent from 70 percent as a result of the move.

RBS declined to comment when contacted by Reuters. A Lloyds spokesperson was not available.

The report comes as the UK government is preparing to announce a banking overhaul this week as carve-up plans for the two rescued banks are finalised.

The government hopes to attract new players to the market following a process that will see the country's largest retail lenders selling off assets, including a string of high street bank branches, and shrinking back their balance sheets. [ID:nL1174390]

Part-nationalised RBS and Lloyds Banking Group, 43 percent state-owned, have been under scrutiny for months by EU competition regulators investigating the impact of billions of pounds received in state aid. The banks are also negotiating with the government over a major insurance scheme for bad debts.

Both banks are set to detail a final deal with the government this week, including asset sales to ease EU concerns, sources close to the matter have told Reuters.