you’re absolutely spot on
Debit balances are taken as zero for MAB calculation.
Monthly Average Balance = Sum of closing balance for all days in a month (Day 1 + Day 2 + Day 3 +… + Day 30) Divided by Number of Days in a month (30).
Example: If the balances in Saving Account are: October 1 (Rs 2000), October 2 (Rs 1000), October 3 (-Rs 1000, i.e., debit balance of Rs 1000), Average Balance as on October 3 = (Rs 2000 + Rs 1000 + Rs 0) / 3 = Rs 1000/-. Note: October 3 balance is taken as Rs 0 as it is in debit balance.
There have been several queries recently around our recent communication of MAB. We hope that this article helps our users understand what MAB is, how it is calculated, and what are the effective changes to user accounts due to this.
Understanding MAB: For Jupiter users, MAB stands for “Monthly Average Balance”. This differs from the universally accepted “Minimum Account Balance” that most traditional banks have. The Monthly Average Balance is our effort in incentivizing our users who truly look at Jupiter as their primary bank account, and as such, it is closely linked to our Rewards Structure as well. Unlike other banks who charge customers for failing to maintain the Minimum Account Balance, there are no charges or deductions for our customers if they fail to maintain the Monthly Average Balance. This ONLY affects their ability to earn rewards for eligible debit card and UPI transactions. Our PRO Salary users are exempt from the MAB structure.
How is MAB calculated: We have the simplest way to calculate the Monthly Average Balance of our users. We take the sum of the DAY-END balances of the user’s account, and simply divide this by the number of calendar days in the month. The DAY-END balance also includes any amount that the customer saves in their POTs Account. Users who maintain the Monthly Average Balance are automatically categorized to earn jewels on eligible debit card and UPI transactions - depending on their tenure or previous eligibility status.
Say for the month of September, a customer maintains a DAY-END balance of
· INR 20,000 for 10 days
· INR 30,000 for 5 days
· INR 4000 for 8 days
· INR 12,000 for 7 days.
The first step to calculate the Monthly Average Balance, is to sum up all the DAY-END balances of the customer, which in this case is ((20,00010)+(30,0005)+(40008)+(12,0007)) = 4,66,000.
The next step is to divide this total with the number of calendar days in the month of September – 30.
The Monthly Average Balance for this customer is (4,66,000/30) = 15,333.33
What does the introduction of the MAB mean for our customers: As we mentioned above, unlike traditional banks, failing to maintain the Monthly Average Balance does not have any repercussions for our customers, such as being charged maintenance or other fees. This only means that our users will not be able to earn jewels for eligible debit card and UPI transactions. Most of our transacting customers are already able to meet the Monthly Average Balance via their DAY-END balance sums; or have created POT accounts to keep this amount aside, thereby relieving them from having to track their MAB.
Maintaining a certain corpus and having regular transactions is an integral part of any banking system – that is mutually beneficial for all parties involved. We have put in a lot of thought while designing our MAB process – ensuring least disruption to the majority of our customers, and also incentivizing the right banking behavior for those customers who use Jupiter account as their secondary account only - thereby making this mutually beneficial.
Is pots balance added to the MAB. Though I have enough balance in pots to have the least MAB, it stills requires me to deposit more money. Anyone have a solution to this?
@Ajaatha_Shathru i still have a concern if pot balance is considered for the MAB?, as i had mentioned earlier that i have been maintaining the pot balance more than 10k from past few months approx from month of May i have not withdrawn any amount from pot and have been adding money on monthly bases without withdrawing the amount but , i
have received alert on my home page to maintain MAB to maintain pro account. Also my avg balance is showing less than 10k in pro screen tab not sure why? I think problem still exist
Hello @Akash1 ,
Let me connect with you via DM and assist you with this😊.
Same issue here. MAB is not picking POT’s balance.
Hello, Rahul! We appreciate you letting us know about this. I’ve taken it up with the relevant teams for further examination. I’ve also sent you an email to your registered email address and will keep you updated on our progress. Thank you!
You guys still figuring out this simple math? I am still seeing message on front screen that need to maintain MAB and should deposit another ₹23,000. Really, it is taking that long for your product team to get the maths right here?
See screenshot. I have more than ₹10,000 in POTs.
Really disappointed with the programmers working on this