Smart Business Account FAQs
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|
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 if I maintain an MAB higher than Rs. 25,000 in a month?
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|
What if I do not maintain the required MAB of Rs. 25,000?
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.