Full formBanking & Finance
MABstands forMonthly Average Balance
Full Form of MAB
What is MAB?
Monthly Average Balance (MAB) is the minimum average amount that a bank account holder must maintain in their savings or current account over a calendar month. In India, most banks such as State Bank of India (SBI), HDFC Bank, ICICI Bank, and others specify a required MAB, often ranging from ₹1,000 to ₹10,000 depending on the bank and branch location. The MAB is calculated by summing the closing balances at the end of each day and dividing the total by the number of days in the month. If the actual average falls below the stipulated MAB, the bank levies a non-maintenance charge or penalty. This concept is widely used across Indian retail banking, and customers are regularly reminded to maintain sufficient funds to avoid fees. In competitive banking exams like IBPS PO, SBI Clerk, and RBI Assistant, questions on MAB appear frequently, testing candidates’ understanding of its calculation and regulatory implications. Understanding MAB helps account holders manage their finances effectively and avoid unnecessary charges, making it a key metric in personal banking.
MAB का फुल फॉर्म
मासिक औसत शेष
Example
The bank sent an SMS alert reminding the customer to deposit funds to maintain the required MAB of ₹5,000 for the current month.
MAB — frequently asked questions
What is the full form of MAB?
The full form of MAB is Monthly Average Balance, the minimum average amount that must be maintained in a bank account over a month.
How is MAB calculated by Indian banks?
MAB is calculated by adding the closing balance at the end of each day of the month and then dividing by the number of days in that month.
What happens if I fail to maintain MAB in my savings account?
If the monthly average balance falls below the required level, the bank charges a non-maintenance penalty, which varies by bank and account type.