Most banksin the countrycharge their customers a penalty fee for non-maintenance of monthly average balance (MAB) in their savings accounts.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.These penalty charges levied bylenders for keeping insufficient bank balance in regular savings account depends on multiple factors, such as the location of bank branch and the degree of shortfall, meaning how far the actual bank balance is from the required average.State Bank of India (SBI)Customers with a regular savings account in SBI branches located in metro and urban areas are required 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.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.
Customers with accounts in semi-urban branches and rural branches are required to maintain an MAB of Rs 5,000 andRs 2,500 respectively,according to the bank's website - hdfcbank.com.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 BalanceNon maintenance of Minimum balance chargesModification in charges (Based on Minimum Average Monthly Balance-AMB)a) METRO / URBAN / SEMI URBAN Branchesb) RURAL BRANCHESAMB maintained in the account against the stipulated Rs.
1,000/-Charges per month for violation of AMBAMB maintained in the account against the stipulated Rs.
500/-Charges per month for violation of AMBRs.
999/- to Rs.
700/-Rs.
25/- + applicable Service TaxRs.
499/- to Rs.
350/-Rs.
25/- + applicable Service TaxRs.
699/- to Rs.
400/-Rs.
35/- + applicable Service TaxRs.
349/- to Rs.
200/-Rs.
35/- + applicable Service TaxRs.
399/- and belowRs.
45/- + applicable Service TaxRs.
199/- and belowRs.
45/- + applicable Service Tax(As mentioned on Canara Bank's official website)However, there are certain accounts where MAB rules are not applicable.
These accounts are called as zero balance savings accounts.