Common Monthly Average Balance Issues & How to Fix Them Quickly

If you’ve ever opened your banking app and spotted a “non-maintenance charges” debit (often with GST added), you’re not alone. For many account holders, this happens before they even hear the term Monthly Average Balance (MAB). 

MAB works differently. It looks at your balance across the entire month, not just on salary day or month-end. 

This blog outlines common issues that lead to MAB requirement penalties and how to prevent charges and break the penalty cycle. 

What Is Monthly Average Balance (MAB)?

Monthly Average Balance (MAB) is the average amount you maintained in your account during a month. 

 Banks typically calculate it using your end-of-day balance for each day:

• They take your closing balance for every day in the month
• Add it up
• Divide by the number of days in that month 

Example 

Assume a 30-day month: 

• First 10 days: ₹10,000
• Next 10 days: ₹5,000
• Last 10 days: ₹15,000

Total balance sum = (10 × 10,000) + (10 × 5,000) + (10 × 15,000) 
= ₹3,00,000 

MAB = ₹3,00,000 ÷ 30 = ₹10,000

If your bank’s required MAB is ₹10,000, you’re safe. 

That’s why: 

• One day of high balance doesn’t automatically “save” the month
• Several days of low balance can pull the average down
• Regular small debits matter more than people realise 

What is the Difference Between Minimum Account Balance vs Monthly Average Balance?

People mix these up because both sound like “keep some money in the account.” But the rule and the way penalties happen can be very different. 

How to quickly know which applies to you: 

Check your account’s “fees / charges / service charges” section in the mobile app, netbanking, or account welcome document. Many banks explicitly mention “MAB” (or “AQB” in some cases), and the minimum balance requirement is usually also listed there. 

How to Check Your MAB Requirement in 2 Minutes

If you’re not sure whether your account even has a Monthly Average Balance rule, don’t guess. Check it once and you’ll know exactly what applies to your account variant. Every Ujjivan SFB Savings Account product page contains MAB requirement so you can stay informed.As an alternative, you can also view our schedule of charges.

Which MAB Problems Hit First-Time Users Most Often?

Most MAB issues are not “big money mistakes.” They’re routine patterns like salary credits, subscriptions, EMIs, small daily spending that slowly drag the monthly average down. 
Below are the most common ones, with quick fixes. 

1. How Do Auto-Debits Quietly Eat Up My MAB?

EMIs, SIPs, OTT subscriptions, insurance payments, and even annual fees can cause repeated dips. Many first-timers don’t notice because each debit seems “normal,” but together they reduce the daily closing balance. 

Quick fix (same week action): 

• List your auto-debits (bank apps usually show them under mandates/standing instructions).
• Ensure a buffer that covers one EMI cycle + 7–10 days of routine spending
• If possible, align major debits close to salary date so the average doesn’t stay low for long. 

Bonus Tip: If you maintain MAB tightly, avoid multiple auto-debits spaced across the month. Consolidate dates where possible. 

Why Am I Incurring MAB Requirement Charges Every Month?

Once your monthly pattern sets in (balance staying low for most days), the penalty repeats. Many people keep thinking, “Next month I’ll fix it,” but the same spending flow continues. 

Quick fix (decision-based): 

If this is happening for 2–3 months, do one of these: 

• Upgrade the habit: Keep a permanent floor balance (simplest)
• Change the account type: Ask for a lower MAB variant if available
• Move to a low MAB savings account: If your cash flow doesn’t support MAB 

Important: Don’t keep paying penalties just because the account is old. Loyalty doesn’t reduce service charges.

What Exactly Gets Debited When You Miss MAB?

When you don’t maintain the required average, banks typically debit a non-maintenance charge (the service charge/penalty). On top of that, GST may apply, which is why the deduction can look bigger than expected. 

How Do I Avoid MAB Requirements Penalties?

A clean approach that works for most first-timers: 

• Keep your MAB amount as a non-spendable base
• Schedule major debits closer to income credit dates (where possible)
• Check your balance at two moments each month:

1. Mid-month
2. 2–3 days before month-end

• If your financial routine cannot support the requirement, choose an account designed for that reality (low MAB or zero balance)