Monthly average balance (MAB) is the average balance banks require their customers to maintain in a month in their savings accounts. This average balance varies across banks and some banks look at quarterly average balance instead of the monthly average balance.

If a customer doesn’t comply with the monthly average balance (MAB) rules, then he/she will be charged a penalty.

Savings account holders are required to maintain a monthly average balance - which is the average of daily closing balances in a bank account - to the tune of Rs. 1,000-10,000. Please note the average balance requirement varies from one bank to another.