Dynamic Current Account FAQ

Calculation of AMB

What is AMB and how is it calculated?


  • Calculation of AMB

AMB or Average Monthly Balance is the average of day end balance in the account for all the days in a month. An illustration of the same is as below:
Illustration:  
A sample bank statement of May 2015:

Transaction Date Debit Amount Credit Amount Balance at the end of day
1 01-May-15 - 1,00,000 1,00,000
2 10-May-15 20,000 - 80,000
3 20-May-15 20,000 1,00,000 1,60,000
4 31-May-15 - 40,000 2,00,000
AMB       1,18,064

AMB Calculation:
May 2015 Balance
= (1,00,000 * 9 days) + (80,000 * 10 days) + (1,60,000 * 11 days) + (2,00,000 * 1 day)
= 36,60,000

Total No. of days in the May 2015 = 31
Average Monthly Balance (AMB) of May 2015
= 36,60,000/ 31
= Rs. 1,18,064.51

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