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.
But most of the customers of banks, including those from the Northeast are not sure how much of money is cut buy their banks if they don’t maintain minimum balance.
A report published on Wednesday by NDTV Profit stated 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.
The SBI customers with a regular savings account in SBI branches located in metro and urban areas need to maintain a monthly average balance of Rs. 3,000, according to the bank’s website – sbi.co.in.
According to SBI, the customers with accounts in semi-urban branches and rural branches are required to maintain an MAB of Rs. 2,000 and Rs. 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) Charges
Shortfall <= 50% Rs. 10 + GST
Shortfall > 50-75% Rs. 12 + GST
Shortfall > 75% Rs. 15 + GST
Semi-urban branch (required MAB Rs. 2,000)
Shortfall <= 50% Rs. 7.50 + GST
Shortfall > 50-75% Rs. 10 + GST
Shortfall > 75% Rs.12 + GST
Rural (required MAB Rs. 1,000)
Shortfall <= 50% Rs. 5 + GST
Shortfall > 50-75% Rs. 7.50 + GST
Shortfall > 75% Rs. 10 + GST
(As mentioned on SBI’s official website)
The HDFC Bank customers with a regular savings account in HDFC branches located in metro and urban areas need to maintain a monthly average balance of 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 and Rs. 2,500 respectively.
Customers failing to meet the MAB requirements have to bear the following penalty charges:
ICICI Bank
The ICICI Bank customers with a regular savings account in ICICI Bank branches located in metro and urban areas need to maintain a monthly average balance of Rs. 10,000, according to the bank’s website – icicibank.com. Customers with accounts in semi-urban branches and rural branches are required to maintain an MAB of Rs. 5,000 and Rs. 2,500 respectively.
Customers failing to meet the MAB requirements have to bear the following penalty charges:
Minimum monthly average balance (MAB)* Metro and Urban locations – Rs.10,000
Semi-urban locations – Rs.5,000
Rural locations – Rs. 2,000
Gramin locations – Rs.1,000
Charges for non maintenance of minimum monthly average balance (NMMAB) Metro/Urban/Semi-Urban/Rural locations :
Rs. 100 + 5% of the shortfall in required MAB
Gramin locations : 5% of the shortfall in required MAB
(As mentioned on ICICI Bank’s official website).