To avoid service charges, you should maintain a Monthly Average Balance (MAB) in your PNB account, the exact amount of which varies depending on the geographic location of your bank branch.
Understanding Monthly Average Balance (MAB) in PNB
The Monthly Average Balance (MAB) is not a minimum balance you must maintain every single day, but rather the average of your end-of-day balances for each day of the month. If your average balance falls below the stipulated requirement for your area, PNB may levy service charges.
PNB Monthly Average Balance Requirements
The following table outlines the minimum Monthly Average Balance (MAB) required for PNB accounts based on their branch location:
| Area | Minimum Monthly Average Balance (MAB) |
|---|---|
| Rural | Rs. 1,000/- |
| Semi Urban | Rs. 2,000/- |
| Urban | Rs. 5,000/- |
| Metro | Rs. 10,000/- |
Practical Insights on Maintaining MAB
- Calculation Example: To illustrate, if your PNB account is in a metro area requiring an MAB of Rs. 10,000, you don't necessarily need to have Rs. 10,000 in your account every single day. For instance, you could maintain Rs. 20,000 for half of the month and Rs. 0 for the other half (assuming a 30-day month). Your average balance would be calculated as (20000 * 15 + 0 * 15) / 30 = Rs. 10,000, thereby meeting the MAB requirement.
- Consequences of Non-Maintenance: Failing to maintain the required MAB typically results in the bank deducting a service charge from your account. These charges are applied to cover administrative costs associated with accounts that do not meet the minimum balance criteria.
- Tips to Ensure Compliance:
- Regularly monitor your account balance, especially if you anticipate significant withdrawals.
- Set up balance alerts through PNB's banking services to be notified if your balance falls below a certain threshold.
- Ensure that you have sufficient funds, particularly towards the end of the month, to bring your average balance up to the required level.
By understanding and adhering to these MAB requirements, account holders can effectively manage their finances and avoid unnecessary service charges with Punjab National Bank.
