The new rules, imposed by the Financial Conduct Authority (FCA), also stipulate that cash users can expect to make withdrawals without any fees.

A 2021 study suggested that the UK could become an entirely cashless society by 2026 if trends of declining usage continued. 

That same year, the number of payments made with cash plummeted by around 50 per cent as consumers were encouraged to use contactless in the wake of the pandemic.

But cash remains vital for many people, particularly vulnerable groups including the elderly and domestic abuse victims who may not have access to other payment methods.

“While the growing choice and convenience of digital payments is great, cash has an important and continuing role to play,” said Andrew Griffith, economic secretary to the Treasury.

“People shouldn’t have to trek for hours to withdraw a tenner to put in someone’s birthday card – nor should businesses have to travel large distances to deposit cash takings.

“These...