Banks find it economical to fill cash machines with high denomination notes
A cash machine which only issues £5 notes is being introduced in east London in a bid to put more of the notes into circulation.
The UK's first £5-only cash machine will be installed in Roman Road, Bethnal Green, next month.
Operator Bank Machine said: "No-one likes having to pay for a low-cost product with a £10 or even £20 note."
Last year Bank of England governor Mervyn King said banks were not putting enough £5 notes into circulation.
The total value of Bank of England notes in circulation doubled from £20bn in 1997 to £40bn last year.
But the value of £5 notes has remained constant for 15 years, at £1bn.
'Soiled and scruffy'
Banks find it more economical to fill cash machines with higher denomination notes, such as £10 and £20, as they need to be refilled less often, Mr King said.
Without fresh notes in circulation, the existing £5 notes have become "noticeably soiled and scruffy", he added.
The £5-only machine will be located near a busy Bethnal Green market, Bank Machine said, with a further 20 machines planned around the UK.
The firm said it would not charge users a fee to withdraw money from the £5-only machine.