Roaming Current Account
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
