How MAB (Monthly average balance) is calculated

[Smh]

can anyone tell if calculation shown above is correct ?

If MAB is Rs 10,000 so can I just keep Rs 10,000 for 30 days so my daily closing balance would be Day 1- 10k, Day 2- 10k till Day 30. So total closing balance for 30 days would be 3,00,000 . Avg monthly bal = 3,00,000/30 = Rs 10,000.

OR do I have to deposit Rs 10,000 everyday for 30 days without withdrawing anything ?

What is Monthly Average Balance or MAB of Savings Account? - BasuNivesh - the author of this post claims to be a sebi registered advisor so his calculation should be correct but I am confused.

 

[Sushubh]

ugh. if you have 10,000 every day for the month, you have maintained 10K mab for that month.
if you have 3L on first of the month. and you withdraw it all on second of the month. you would still have 10K mab for that month.
at least that's how yes bank does it. minimum amount on every day is considered as the balance for that day.

 

[Smh]

Example: If the balances in Current Account are: October 1 (Rs 2000), October 2 (Rs 1000), October 3 (-Rs 1000, i.e., debit balance of Rs 1000), Average Balance as on October 3 = (Rs 2000 + Rs 1000 + Rs 0) / 3 = Rs 1000/-. Note: October 3 balance is taken as Rs 0 as it is in debit balance.
Current Account Monthly Average Balance (MAB) Calculator - Business Banking

this calculation from icici confused me.

May be its just me but that chart explain MAB calculation so easily why no bank has such chart on their site explaining mab calculation.

 

[Sushubh]

what is -1000 debit balance 😕

yes bank has a section on the website where it shows you current aqb/amb. they really should add it to the mobile app as well.

 

[Smh]

thats confusing right 😕 they don't mention Rs 1000 was debited on Day 2 but closing bal for Day 2 is 1000 and all debit balance is considered 0 ??? which was -1000

 

[Sushubh]

i think what they are trying to say here is...

October 1: Rs. 2000
October 2: Rs. 1000 withdraw so balance is Rs. 1000
October 3: Rs. 1000 withdraw so balance is Rs. 0.

 

---