Page last updated at 15:22 GMT, Tuesday, 22 July 2008 16:22 UK

Cashpoint to issue only 5 notes

5 note
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.


SEE ALSO
Bank acts on 5 note distribution
22 Jun 07 |  Business
ATM to offer downloads and games
06 Mar 07 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific