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    How is the Monthly Average Balance (MAB) calculated by SBI?


    Confused about the Monthly Average Balance (MAB) calculated by SBI? Learn from experts how the MAB is calculated and the required minimum balance needed to be maintained in your savings bank account in SBI & its associated banks.

    From 1st April, 2017 onwards, SBI and Associated Banks have changed theMonthly Average Balance (MAB) to Rs. 5000/- per month in the Savings Bank Accounts of SBI and Associated Banks of SBI in metro cities. I have three Savings Bank Accounts in SBI and another two Associated Banks (one each).

    My questions are:-
    (a) How is the Monthly Average Balance (MAB) calculated by SBI?

    (b) Am I required to keep minimum Rs. 5000/- in the Savings Bank Accounts maintained at Associated Banks also?

    Experts may kindly give guidance.
  • #142116
    TThis response is marked as DELETED by the admin.

    The charging penalty for non-maintenance of MAB of cash balance in saving account has recently introduced by State Bank of India. The new TOS has come to effect after five years after the demonetisation of 500 an 1000 Rupees Indian currencies. SBI has also revised fees on services and digital banking.

    In a press realease, the SBI has given a clear statement that all the saving bank account holders has to maintain a Minium Ammount Balance (MAB) of 5000 in Metro cities and Urban or Rural area's account holders have to maintain 3000, 2000 and 1000 for backward areas. The service tax or penalty for failure to abide the TOS will result to attract 100 Rupees debit charges in account.

    For instance, the 75-80% of MAB of 5K residing in Urban areas who fail to maintain will have to maintain will incur 50, 30, 20 and 10 Rupees. The tax also includes, SMS and , ATM Charges etc.

    Be the Hero of the zero hour!

  • #142119
    https://www.mymoneysage.in/blog/calculating-monthly-average-balance-mab/

  • #142136

    @Partha Kansabanik
    (a) Calculation of MAB:
    Step 1: End of the day closing balance (EODCB) of day 1+EODCB of day 2+EODCB of day 3+........+EODCB of last day of the month. Find the total
    Step 2: Divide the total in step 1 by no. of days in the month. This is the required MAB.

    (b) Balance in associate banks:
    Yes, with associate banks too you need to maintain the same balance.

  • #142144
    The charging penalty for non-maintenance of MAB of cash balance in saving account has recently introduced by State Bank of India. The new TOS has come to effect after five years after the demonetisation of 500 an 1000 Rupees Indian currencies. SBI has also revised fees on services and digital banking.

    In a press realease, the SBI has given a clear statement that all the saving bank account holders has to maintain a Minium Ammount Balance (MAB) of 5000 in Metro cities and Urban or Rural area's account holders have to maintain 3000, 2000 and 1000 for backward areas. The service tax or penalty for failure to abide the TOS will result to attract 100 Rupees debit charges in account.

    For instance, the 75-80% of MAB of 5K residing in Urban areas who fail to maintain will have to maintain will incur 50, 30, 20 and 10 Rupees. The tax also includes, SMS and , ATM Charges etc.

    Be the Hero of the zero hour!

  • #142571
    This is good step by SBI for Improving their NPA a bit but its paying harder for Low earning individual.
    They dont have enough to maintain their account.
    There are millions of people in india who cant afford to keep their money in saving as they have to use the same for their basic needs.
    They are so much needed that they are not aware about MAB system.
    They are unaware about the system and lastly govt will get bad response from them.

  • #143397
    Yes SBI follows the monthly average balance rule for its associate banks too.
    The method that you need to count monthly average balance is:
    sum of end of the day balance each day of a particular month. Add all of it. Now divide it with total no. of days of that particular month. the result is your MAB.


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