MAB is the sum of all EOD closing balance divided by the number of days in that month.Most of the banks in the country require customers to maintain a certain Monthly Average Balance or MAB in their savings bank accounts, failing which they have to bear certain penalty charges.
Monthly Average Balance (MAB) is the sum of all the end of day (EOD) closing balance divided by the number of days in that month.
Leading lenders such as State Bank of India (SBI), HDFC Bank, ICICI Bank and Kotak Mahindra Bank have fixed their monthly average balance requirements according to the location of a customer's account and charge customers for non-maintenance of minimum average balance in their savings accounts.(Transaction Charges On ATM-Cum-Debit Cards Levied By Top Banks)State Bank of India (SBI)Customers with a regular savings account in SBI branches located in metro and urban areas need to maintain a monthly average balanceof Rs 3,000, according to the bank's website - sbi.co.in.
Customers with accounts in semi-urban branches and rural branches are required to maintain an MAB of Rs 2,000 andRs 1,000 respectively, noted SBI.Customers failing to meet the MAB requirements have to bear the following penalty charges:Metro and urban branch (required MAB Rs 3,000)ChargesShortfall <= 50%Rs.
10 + GSTShortfall > 50-75%Rs.
12 + GSTShortfall > 75%Rs.
15 + GSTSemi-urban branch (required MAB Rs 2,000)Shortfall <= 50%Rs 7.50 + GSTShortfall > 50-75%Rs 10 + GSTShortfall > 75%Rs.12 + GSTRural (required MAB Rs 1,000)Shortfall <= 50%Rs 5 + GSTShortfall > 50-75%Rs.
7.50 + GSTShortfall > 75%Rs 10 + GST(As mentioned on SBI's official website)HDFC BankCustomers with a regular savings account in HDFC branches located in metro and urban areas need to maintain a monthly average balanceof Rs 10,000, according to the bank's website - hdfcbank.com.
Customers with accounts in semi-urban branches and rural branches are required to maintain an MAB of Rs 5,000 andRs 2,500 respectively.Customers failing to meet the MAB requirementshave to bear the following penalty charges:Description of ChargesRegular Savings AccountMinimum Average Balance RequirementsMetro / Urban branches: AMB Rs.10,000/-,Semi-Urban Branches: AMB Rs.5,000/- ,Rural Branches: AQB Rs.2,500/- or Fixed Deposit of Rs.
10,000 for minimum 1 year 1 day periodCharges applicable on non-maintenanceBalance Non-Maintenance Charges*AMB SlabsMetro UrbanSemi Urban(in Rs.)AMB Requirement -Rs 10,000/-AMB Requirement Rs.
5,000/->=7,500 to < 10,000Rs.
150/-NA>=5,000 to < 7,500Rs.
300/-NA>=2,500 to < 5,000Rs.
450/-Rs.
150/-0 to < 2,500Rs.
600/-Rs.
300/-* plus taxes as applicableAMB Average Monthly BalanceAQB Slabs (in Rs.)Balance Non-Maintenance Charges* (per quarter) - Rural Branches>= 1000 < 2,500Rs.
270/-0 - <1000Rs.
450/-*plus taxes as applicableAQB Average Quarterly BalanceKotak Mahindra BankCustomers with a regular savings account in Kotak Bank branches located in metro and urban areas need to maintain a monthly average balanceof Rs 10,000, according to the bank's website - kotak.com.Customers failing to meet the MAB requirementshave to bear the following penalty charges:ParticularsChargesNMC (Non Maintenance Charges)If AMB <=25% of required Product AMBRs.500If Salary upload is not sighted for 2 consecutive months and AMB not maintainedIf AMB >25% <=50% of required Product AMBRs.400If AMB >50% <= 75% of required Product AMBRs.300If AMB >75% of required Product AMB but less than product AMBRs.150However, there are certain accounts where MAB rules are not applicable.
These accounts are called as zero balance savings accounts.