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Current Accounts
What is MAB and how is it calculated?
MAB or Monthly Average Balance is the average of day end balances in the account for all the days in a month.Given below is an example of how MAB is calculated:
A sample bank statement of March 2013:
| Date | Transactions | Debit Amount | Credit Amount | Balance at the end of day |
|---|---|---|---|---|
| 1-Mar-2013 | A | - | 10,00,000 | 10,00,000 |
| 10-Mar- 2013 | B | 1,00,000 | - | 9,00,000 |
| 20- Mar-2013 | C | 2,00,000 | 3,00,000 | 10,00,000 |
| 31-Mar-2013 | D | 5,00,000 | - | 5,00,000 |
| MAB | 7,74,193 |
MAB Calculation:
Total Balance in March 2013
= (10,00,000 * 9 days) + (9,00,000 * 10 days) + (10,00,000 * 11 days) + (5,00,000 * 1 day)
= 24,000,000 (2.4 Cr)
Total No. of days in the month = 31
Monthly Average Balance (MAB) of March 2013
= 24,000,000/ 31
= Rs. 7,74,193
What is the minimum MAB commitment required for Roaming Current Account?
| Product Variant | Minimum MAB commitment (Rs) |
|---|---|
| Roaming Current Account Standard | 10,000 |
| Roaming Current Account Classic | 25,000 |
| Roaming Current Account Premium | 50,000 |
| Roaming Current Account Gold | 100,000 |
| Roaming Current Account Gold Plus | 300,000 |
| Roaming Current Account Platinum | 500,000 |
| Roaming Current Account Elite | 10,00,000 |
What if I do not maintain the required MAB as required in the product?
If the required MAB is not maintained as per the product variant, the customer will be charged a non maintenance charge and will not gain free limit on cash deposit as per the below criteria:
For Gold, Gold Plus, Platinum and Elite variants of Roaming Current Account
Scenario1: MAB maintained is less than 50% of the required MAB
Result: Customer will be charged a non maintenance charge and will not gain free limit on cash deposited
Scenario 2: MAB maintained is less than the required MAB of the product variant but more than or equal to 50% of the required MAB
Result: Customer will be charged a non maintenance charge but will gain the free limit on cash deposited as per the product variant
For Standard, Classic and Premium variants of Roaming Current Account
Scenario1: MAB maintained is less than 80% of the required MAB
Result: Customer will be charged a non maintenance charge and will not gain free limit on cash deposited
Scenario 2: MAB maintained is less than the required MAB of the product variant but more than or equal to 80% of the required MAB
Result: Customer will be charged a non maintenance charge but will gain the free limit on cash deposited as per the product variant
