'Free cash machines are vanishing at a record rate amid cuts to their funding.
More than 200 are being removed – or switched to charging for withdrawals – every month. Remote areas are among the hardest hit.
The figures from Link, which oversees the ATM network, show that the number of free machines fell from 54,500 to 53,200 in the first six months of the year.
The shutdowns follow a cut to the fees that banks pay when a customer uses an independent operator's ATM.
Most affected are the elderly, who are more likely to use cash, and small traders such as cafes.
Lib Dem leader Sir Vince Cable said: 'The simple truth is that for most people, Britain remains a cash economy and we can't pretend that the vast majority of people are using credit or debit cards for everything.'
Mike Cherry of the Federation of Small Businesses said: 'Access to cash for small firms is vital, particularly to those in rural or hard-to-reach areas, but these figures highlight that more and more of these firms are losing that crucial access.
A reduced access to cash via ATMs and bank branches is only giving card payment companies free rein to increase the charges they place on to small firms.'
The fee cut was pushed through after intense lobbying by Lloyds and other banks.
Campaigners warned at the time that it would make thousands of ATMs unprofitable and force them to shut.'
Read more: Cashpoints are disappearing from UK streets with more than 500 ATMs closed every month, regulator reports
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