NSW Police said the incident occurred about 10.45am while a 64 year-old woman was using the Griffith Road ATM.

"She was approached by a 39 year-old woman, who allegedly grabbed hold of the cash," police said in a statement.

"A struggle ensued between the pair and a bystander who intervened, before the younger woman ran from the scene with the cash."

Murray River Police District officers visited a Prune Street home following inquiries and arrested a woman, 39, about 12.45pm.

She was taken to Albury Police Station and charged with aggravated robbery.

Police said the woman was refused bail to appear at Albury Local Court on Friday, January 28.

IN OTHER NEWS:

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: