Leading banks such as SBI, HDFC Bank and ICICI Bank have fixed their MAB requirements according to the location of a customer's account.
Regular savings accounts in banks require customers to maintain a certain minimum average balance (MAB) every month. Leading banks such as State Bank of India (SBI), HDFC Bank, ICICI Bank, Kotak Mahindra Bank, among others, have fixed their monthly average balance requirements according to the location of a customer's account in urban, metro, semi-urban and rural areas, among other factors. Customers failing to meet the MAB requirements in a month have to bear certain penalty charges. The amount of penalty varies on the basis of branch location.
SBI customers with accounts in metro and urban centres are required to maintain a minimum average balance of Rs 3,000 every month. Customers with accounts in semi-urban branch are required to maintain a MAB of Rs 2,000. Customers with accounts in rural branch are required to maintain a MAB of Rs 1,000.
Customers with a regular savings account in HDFC Bank branches located in metro and urban areas are required to maintain a MAB of Rs10,000. The AMB required in semi-urban and rural locations is Rs. 5,000 and Rs 2,500 respectively.
However, there are certain accounts where MAB rules are not applicable. These accounts are called as zero balance savings accounts.