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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

In Smart Business Account, a customer is required to maintain a minimum Monthly Average Balance of Rs. 25,000.

If the customer maintains an MAB higher than Rs. 25,000, the customer will get free limits as a multiple of the balance maintained or Rs. 1.2 Crore, whichever is lower. Thus, a higher balance will provide for higher free limit as given in the features. Given below is a sample of how the free limits work:

MAB Maintained (Rs) Cash deposit in the month anywhere (Rs) Cash deposit free upto Rs (12 * MAB) Cash deposit not free (and chargeable) Rs
50,000 10 Lacs 6 Lacs 4 Lacs
50,000 5 Lacs 6 Lacs 0
10 Lacs 1 Cr 1.2 Cr 0
10 Lacs 1.5 Cr 1.2 Cr 30 Lacs
30 Lacs 2 Cr 1.2 Cr 80 Lacs

Scenario 1: MAB for the month is less than Rs. 20,000
Result: Customer will be charged a non maintenance charge of Rs. 1,000 for that month and will not gain any of the above mentioned free limits

Scenario 2: MAB for the month is more than Rs. 20,000 but less than Rs. 25,000
Result: Customer will be charged a non maintenance charge of Rs. 1,000 for that month. But, the customer will be eligible for all the free limits as given in features section.

Anywhere cash deposit means cash deposited in any ICICI Bank branch across India. This includes cash deposited within the city of account opening and outside the city of account opening.

Non Cash Transactions include Demand Drafts, Pay Order, Multicity cheque payments, Local Cheque collection Non base & Upcountry Cheque Collections.

Free Transactions include all cash & clearing transactions except payments / collections through RTGS & NEFT, Upcountry Cheque Collection and transactions.