Around 60 people queued up at the ATM in Mansfield Woodhouse, Notts, before the fault was spotted by bosses and the cash machine put of service.
The Lloyds Bank ATM in Mansfield Woodhouse, Notts, malfunctioned and began spewing out notes as customers withdrew cash yesterday morning.
A spokesman for Lloyds Bank said investigations had begun into how the error occurred and the group would not be able to provide details on how much cash was taken from the ATM.
It is not thought that individuals who cashed in will not be pursued to reimburse the bank.
The spokesman said: "We're aware that an error occurred with a Lloyds Bank ATM in Mansfield Woodhouse, resulting in the ATM distributing incorrect amounts of cash.
The ATM is now out of service and the error is being investigated."
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