So concerned are politicians about the prospect of cash machine charges, that chief executives were hauled before the Treasury select committee this week to answer questions from MPs. And customers of two of the largest retail banks will be reassured by comments made by their representatives.

Although 40% of cash machines currently charge for withdrawing money, both Royal Bank Of Scotland and HBOS have committed to operating free transactions.

Angela Eagle, Labour MP for Wallasey grilled Directors of HBOS and Royal Bank of Scotland appearing before the Treasury select committee, asking if they were trying to bring in charges "by stealth".

James Crosby, chief executive of HBOS, replied: "I do recognise this as a concern but we do not charge and we are committed to free cash machines and believe all the banks are."

Benny Higgins, chief executive of retail banking at RBS, said: "We are committed to the provision of free machines."

HBOS has sold 816 machines to independent operator Cardpoint which has converted 250 into charging machines. Mark Mills, chief executive of Cardpoint, was accused by committe members of a lack of transparency on his cash machines. James Plaskitt, Labour MP for Warwick and Leamington, said Mr Mills had received a £150,000 bonus for buying the machines from HBOS.

Mr Mills replied: "Everyone would like everything for free but the world isn't like that."

Ron Delnevo, managing director of Bank Machine, said: "This is a low margin business. We made £175,000 in pre-tax profits in 2003."

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