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What is MAB and how is it calculated in Roaming Current Account?

MAB or Monthly Average Balance is the average of day end balances in the account for all the days in a month.Given below is an example of how MAB is calculated:

A sample bank statement of March 2013:

DateTransactionsDebit AmountCredit AmountBalance at the end of day
1-Mar-2013A-10,00,00010,00,000
10-Mar- 2013B1,00,000-9,00,000
20- Mar-2013C2,00,0003,00,00010,00,000
31-Mar-2013D5,00,000-5,00,000
MAB   7,74,193

MAB Calculation:

Total Balance in March 2013
= (10,00,000 * 9 days) + (9,00,000 * 10 days) + (10,00,000 * 11 days) + (5,00,000 * 1 day)
= 24,000,000 (2.4 Cr)

Total No. of days in the month = 31

Monthly Average Balance (MAB) of March 2013

= 24,000,000/ 31
= Rs. 7,74,193