FREE cash machines face being decimated in the coming months unless urgent action is taken to protect them, a consumer watchdog has warned.

New research shows withdrawal fees of at least 95p were imposed on almost 1,700 machines across the UK between January and March.

And the rate appears to be increasing – with 1,250 of these conversations taking place in March alone.

Gareth Shaw, head of money at Which?, which obtained the figures, said communities are being “stripped of free access to cash at an alarming rate”, hitting the most vulnerable in society hardest.

He said: “A regulator is desperately needed to get a grip of these rapid changes across the cash landscape and ensure all those still reliant on this important payment method aren’t suddenly shut out from accessing the cash they need in their daily lives."

It came as banks were accused of “giving up” on communities across Scotland by closing branches and removing cash machines.

Bosses from RBS, Santander, TSB and Bank of Scotland were questioned by MPs during Westminster’s Scottish Affairs Committee.

Convener Pete Wishart described the situation as "unacceptable" and raised concerns there are no branches in “large swathes of Scotland”.

He suggested branch closures contributed to a recent finding by Which? that trust in banks in Scotland was down to just 39 per cent, compared to 45% in the whole of the UK.

SNP MP Deidre Brock said: "Banks are basically just giving up on their communities and their local high streets aren't they?

"This is just really all about the financial savings banks can make as a result of these branch closures."

Earlier this year, Which? revealed 290 ATMs disappeared from Scotland’s streets in 2018, while more than a third of all branches have shut in just eight years.

Most of the previously free cash machines affected by the latest conversations are operated by Cardtronics – the UK’s biggest cashpoint operator – which has warned more are likely in the coming months.

Notemachine, another major cashpoint provider, has also said it is considering converting up to 4,000 machines in its 7,000-strong network.

If these plans go ahead, Which? said the UK stands to lose more than one in 10 of its free cashpoints in a matter of months.

It called on the Government to appoint a regulator to protect consumers and businesses, and warned that without this the UK risked drifting into a no-cash society that could shut people out.

The Scottish Affairs Committee launched a banking inquiry following the proposed closure of 62 branches by RBS.

Speaking after yesterday’s session, Mr Wishart said it demonstrated Scotland’s banks had learnt very little in the intervening period.

He said: “They think they are adapting to a changing world and offering people more and more banking choices, but in reality they are leaving rural communities, businesses and vulnerable people in the lurch without access to crucial financial services and advice.

"Off-loading their responsibility to provide these services on the Post Office is unacceptable – my committee heard today that Post Offices can only offer a limited range of services.

"The banks seem to be putting their fingers in their ears and ignoring the concerns of their customers and our constituents."

Simon Watson, managing director of personal banking at RBS, told MPs closing branches was not about saving money. He said: "The total savings (from branch closures) were about £9 million but the amount we were investing in the branches was £12 million over the same period.

"Our view is that we are a long way from being a cashless society, we are undoubtedly a less-cash society today but at the Royal Bank we are committed to ensuring the free and consistent and open supply and access to cash right across Scotland."

Susan Allen, head of retail and business banking at Santander, said the number of face-to-face transactions at its Scottish branches fell 34% in the last three years.