Charge Levy on Non-Maintenance of Monthly Average Balance – Process

Customers are required to maintain a minimum monthly average balance as per the Savings account variant held with Standard Chartered Bank.

Methodology for Calculation of Monthly Average Balance

The average Monthly balance for an account is calculated as per the calendar month i.e. January, February etc. For a new account, opened in the middle of a calendar month the average balance is arrived at on the basis of number of days the account has been live in that month.

Date Narration Deposit Withdrawal Balance
1/1/2017 Opening Balance 0
1/1/2017 By clearing 1,50,000 1,50,000
5/1/2017 By clearing 1,00,000 2,50,000
20/1/2017 Cash Withdrawal 50,000 2,00,000
31/1/2017 2,00,000

 

Calculation of Average Balance

From To Balance Number of Days Total Balance (Balance x No. of Days)
1/1/2017 4/1/2017 1,50,000 4 6,00,000
5/1/2017 19/1/2017 2,50,000 15 37,50,000
20/1/2017 31/1/2017 2,00,000 12 24,00,000
Sum = 31 Sum = 67,50,000

 

Average Balance (Sum of Total Balance/Number of Days) = (67,50,000/31) = 2,17,742

In case customer fails to meet the monthly average balance criteria, they will be notified by the bank through either SMS, Email or Physical Letter to maintain sufficient balance within next 30 days. It is the responsibility of customer to keep their communication details updated with the bank to receive such notifications.

If the customer fails to maintain required balances despite the notification, charge will be levied from customer’s account.

Charge applicable – 5% of shortfall in MAB with a max. cap of INR 600. For more details on all service charges, please visit https://www.sc.com/in/deposits/schedule-of-charges/