Summary of this article
Punjab & Sind Bank introduces PSB Parivaar, allowing up to six savings accounts linked. The account eliminates separate monthly average balance (MAB) requirements. This initiative reflects a trend among banks waiving MAB charges
A bank levies monthly average balance (MAB) charges for non-maintenance of the minimum required balance in the account. Although banks typically inform customers about this requirement before opening the account, at times, customers miss tracking it and incur the non-maintenance charges. To address the non-maintenance charges issues, many banks, in the recent past, have done away with the charges, but still, many banks retain such charges. Amid this, Punjab & Sind Bank has introduced a variant of its savings bank account, “PSB Parivaar,” to deal with the issue of MAB.
PSB’s New Offering
The new product is a family banking savings account that aims to offer a convenient and smart way to manage and save money in the account.
The account addresses the MAB requirement by allowing multiple savings accounts to be linked together for the purpose of calculating the MAB. So, the balance need not be maintained separately in each account. According to the bank’s press release, customers can link up to six family savings accounts and enjoy the flexibility in minimum balance requirements.
The other features of this account include nil charges on the National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS), SMS alerts, a free premium debit card, and discounts on locker rentals.
Other Similar Offerings By Banks
However, this is not the first of its kind savings account. Several other banks provide the feature of flexibility in average minimum balance maintenance, with some variations in facilities. For instance, Standard Chartered Bank has the Family Banking Savings Account, which offers linking of four accounts and enjoys the flexibility to maintain MAB in any one or more accounts, along with other discounts and up to 25 per cent off on all locker variants.
Similarly, IDBI Bank’s Kutumb Savings Account offers the facility to maintain MAB by the primary family member on behalf of the entire family. It allows a minimum of two accounts and a maximum of five accounts under the Kutumb arrangement. However, if family MAB is not maintained, it charges in the primary family member’s account.
Lately, several banks have revised their MAB requirement, and some have waived the non-maintenance charges. Indian Bank waived off MAB charges across all its savings bank accounts effective July 7, 2025 and Punjab National Bank abolished the MAB requirement for all its savings bank accounts effective July 1, 2025.
Note that the MAB is determined by the individual banks, and the Reserve Bank of India (RBI) has no role in it.
