MAB Rule Change: ICICI Bank reduced the minimum average balance from Rs 50,000 to Rs 15,000 for Urban New Customers. MAB 7,500 rupees also in Semi-Homeban. Many banks including SBI keep less limits.
ICICI MAB RULE Change: After a strong opposition from the customers, the ICICI Bank has made a big change in the Minimum Average Balance (MAB) rules. The minimum average balance for new customers in urban areas has been reduced from Rs 50,000 to Rs 15,000. However, it is still ₹ 5,000 more than the earlier ₹ 10,000.
Relief in Semi-Raban
- The minimum average balance for new customers in Semi-Urban regions was reduced from ₹ 25,000 to ₹ 7,500.
- MAB will be ₹ 5,000 for old customers in rural and semi-urban areas.
Customers’ pressure and bank’s U-turn
ICICI Bank had reduced the MAB of Rs 50000 for urban new customers a few days ago, on which customers strongly opposed social media. The bank then withdrew the rules partially. However, despite the MAB 15000 for urban customers, it is higher than many banks which has intensified the debate on private bank charge fans and customers rights.
What is the average minimum balance policy of other banks
- SBI completely finished the minimum balance rule in 2020.
- The rest of the big banks keep only MABs ranging from 2,000 to 10,000.
- ICICI’s 50,000 rule was the highest in the market, which has now been reduced.
What is a bank minimum balance? (What is mab)
The minimum account balance (MAB) is the average amount that you have to maintain in your savings account every month or in a fixed period so that you can avoid penalty. MAB is different for each bank. Its limit depends on your account type and branch location such as metro, semi-arbon, rural.
How is MAB calculated? (How is Mab Calculated)
Calculation of minimum account balance is easy. Add closing balance of every day of the month, then participate in the total days of the month.
MAB = Every day’s end-of-day balance total number of total number
Example: If the MAB in the metro branch is Rs 50,000 and 30 days a month. If you keep 50,000 rupees every day, then the MAB will be 50,000 rupees. One day keeps 15 lakh rupees and the rest will be 29 days, then MAB will be 15,00,000 ÷ 30 = 50,000 rupees. Earlier many banks used to see it on quarterly basis, but now most of the banks track on monthly basis.