QAB or MAB
- Some of the private sector banks,like ICICI Bank and HDFC Bank have switched from QAB to MAB. What this means is that customers will have to keep higher balances. It impacts the small savings account holders the most. It increase the Fees income for the bank in the form of MAB charges
- PSU banks like Bank of India , Allahabad bank generally have a lower Quarterly Average Balance to be maintained in saving bank account.
- State Bank of India, which had imposed charges for non-maintenance of minimum balance a few months ago, rolled back the move and does not charge anything
Date
|
Description
|
Withdrawal
|
Deposit
|
Balance (B)
|
Days
(D)
|
Product (B*D)
|
1 Jan
|
Opening Balance
|
20,000
|
14
|
2,80,000
| ||
15-Jan
|
Withdrawal
| 15,000 |
5,000
|
23
|
1,15,000
| |
7-Feb
|
Cash Deposit
|
8,000
|
13,000
|
53
|
689,000
| |
SUM
|
90
(C)
|
10,84,000
(D)
| ||||
QAB = D/C
|
12,044.44
|
Note that even though balance maintained was below 10,000 for 23 days, QAB requirement of Rs 10,000 is still met. (Calculations are shown in table below)
Date
|
Description
|
Withdrawal
|
Deposit
|
Balance (B)
|
Days
(D)
|
Product (B*D)
|
1 Jan
|
Opening Balance
|
20,000
|
14
|
2,80,000
| ||
15-Jan
|
Withdrawal
| 15,000 |
5,000
|
17
|
85,000
| |
31 Jan
|
MAB for Jan
|
5,000
|
31
|
3,65,000/31=11774.19
| ||
1-Feb
|
Opening Balance
|
5,000
|
6
|
30,000
| ||
7-Feb
|
Cash Deposit
|
8,000
|
13,000
|
22
|
2,86,000
| |
| 28-Feb | MAB for Feb |
28
|
3,16,000/28=11285.71
| |||
| 1-Mar | Opening Balance | 13,000 | 13,000 |
31
| ||
| 31-Mar | MAB for Mar |
31
|
4,03,000/31 = 13,000
|
