Policy Objective

The objective of this Policy is to establish a transparent and consistent framework for the levy of charges on Savings Account customers who fail to maintain the prescribed Monthly Average Balance (MAB) applicable to their account variant.

The policy aims to:

• Encourage customers to maintain the prescribed balance requirement associated with their account product.
• Recover a portion of servicing and operational costs incurred by the Bank in maintaining low-balance accounts.
• Ensure fairness, transparency, and regulatory compliance in the application of charges.
• Provide customers with a clear understanding of balance requirements and applicable consequences of non-maintenance.

Scope

This policy shall apply to all Savings Account variants offered by the Bank that carry a Monthly Average Balance requirement.

The policy shall not apply to:

• Basic Savings Bank Deposit Accounts (BSBDA)
• Salary Accounts (where exempted under product terms)
• Accounts specifically exempted by regulatory requirements or Accounts covered under special waiver programs approved by the Bank

Definitions

1. Monthly Average Balance (MAB): Monthly Average Balance (MAB) refers to the average of the daily end-of-day balances maintained in an account during a calendar month.
2. Daily Closing Balance: Daily Closing Balance refers to the ledger balance available in the account at the end of each business day.

• MAB Shortfall:

MAB Shortfall refers to the difference between:

• Prescribed MAB requirement for the account variant, and
• Actual MAB maintained during the month

Where Actual MAB exceeds the required MAB, the shortfall shall be treated as NIL.

Monthly Average Balance Calculation Methodology

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.

The Monthly Average Balance shall be calculated using the following formula:

MAB = Sum of Daily Closing Balances during the Month ÷ Number of Days in the Month

Example: Consider a ledger as below,

Calculation of Average Balance

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

If the Average Balance maintained is lower than the balance required by the account variant held by the client, MAB Charges will be levied.

MAB Requirements & Charges

Charge applicable: 5% of shortfall in MAB with a max. cap as per product variant. Taxes applicable as per prevailing guidelines.

The Bank publishes the charges associated with the non-maintenance of the Minimum Average Balance on its website via Service Fees & Charges for Deposits & Savings Accounts – Standard Chartered India

The Bank may revise the MAB requirements from time to time with appropriate customer notification.

Frequency of Charge Recovery

• MAB shall be assessed at the end of each calendar month.
• Charges shall be computed after month-end processing.
• Applicable charges shall be recovered from the customer’s account during the subsequent charge processing cycle.
• GST and other statutory taxes shall be applied in addition to the charge amount wherever applicable.

Customer Communication

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.

The Bank shall ensure that customers are informed of:

• Applicable MAB requirements at the time of account opening.
• Any subsequent revisions to MAB requirements.
• Applicable charges for non-maintenance.