Nationwide restricting service

The move, which will come into effect on June 7, will mean people with cash cards who want smaller amounts will have to use a cash machine.

It said the measures were needed to cut queues at branches and insisted people would be provided with alternative ways to get their cash.

The building society said the change would not apply to customers with debit cards or those who used a passbook.

Nationwide's divisional director of the branch network, Graeme Hughes, said the change was essential. "About a third of all counter transactions are carried out by less than eight per cent of our customer base.

"And the other 92 per cent say 'what can you do to speed up the queues?' So what we're trying to do is to look at alternative ways of dealing with these customers."

He said people could change accounts or use cash machines and added that the lender was giving customers two months' notice so that it could help them use the cash machines.

Nationwide is withdrawing the use of bank machines for customers who want to pay in cheques of more than 1,000 –the current limit is 10,000.

These customers will now have to queue up at branches.

The building society said counter staff would be more likely to spot fraudulent cheques.