What is MAB in Banking? Meaning, Full Form & How It Works

When you open a savings account, you typically need to maintain a specific balance in your account, known as the Monthly Average Balance (MAB). By maintaining this amount, you can avoid MAB charges. Financial institutions require an MAB to manage funds in an effective way and provide various services without added charges.  

It is a crucial component that allows you to maintain your financial well-being while promoting more stability. By getting more information on what the monthly average balance is and what MAB charges means, you can get more clarity on why it is crucial.  

What is Monthly Average Balance (MAB)? 

MAB full form in banking refers to monthly average balance. It is the average balance you must keep in your savings or current account throughout a calendar month. The requirement of MAB can vary depending on the type of account. At the end of the month, the bank calculates the MAB and imposes a penalty in case of any failure to maintain the minimum balance.  

Some banks offer zero-balance current accounts, which can be an excellent option if you are looking to avoid fees or find it difficult to maintain a specific balance. However, these accounts typically lack the advanced features available with a minimum balance.  

How Monthly Average Balance (MAB) is Calculated? 

Your Monthly Average Balance (MAB) is the average of your closing balance at the end of each day for a whole month. 

Here’s how it works: 

  • Note your bank balance at the end of each day. 
  • Add up all these daily closing balances. 
  • Divide the total by the number of days in the month. 

Example of MAB Calculation 

Day  Closing Balance (₹)  
Day 1  5,500  
Day 2  5,100  
Day 3  …  
…  …  
Day 30  5,400  
Total  ₹1,62,000 (Assumed amount) 

Monthly Average Balance (MAB) 

= Total of daily closing balances ÷ Number of days 

= ₹1,62,000 ÷ 30 

= ₹5,400 
 
So, your MAB for that month is ₹5,400. 
 
If the month has 31 days, simply divide it by 31 instead. 

Reasons to Maintain a Minimum MAB  

Having a minimum MAB doesn’t only help you avoid the penalties – it also ensures a good financial well-being and banking relationship. You can get these advantages by maintaining a minimum balance.  

  • Chances of Earning More Interest: Banks provide interest on the funds in your savings account. The more funds in the account, the more interest you can earn on them. The interest rate may vary depending on the bank.  
  • Privilege to Access Offers: With more funds in your account, you can get benefits like reward points and lifestyle benefits. There is also a chance of getting a personal loan at a preferential interest rate and discounts on other financial products. 
  • Favours Financial Discipline: MAB charges also restrict you from withdrawing funds unnecessarily and can promote savings in the long run. You can keep track of your expenses and stick to the budget. It also encourages investment habits over time, too.  
  • Impact on Credit Score: When you take on a debt, being unable to repay it can affect your credit score. Having a MAB as your safety net, you can maintain your credit health by repaying on time.  

Tips to Maintain the MAB 

Here are some tips for successfully maintaining the MAB: 

  • Selecting a banking account that matches your financial habits with a lower MAB requirement.  
  • Setting a standing instruction for scheduled fund transfers from other accounts in order to maintain minimum MAB.  
  • Tracking your expenses using mobile app or internet banking to ensure that you don’t cross the MAB limit.  
  • Reviewing your statement from time to time to make any related adjustment. 

Also Read: How to Get Bank Account Statement?  

Maintaining a monthly average balance can not only help you avoid penalties but also lets you access a range of rewards and services free of cost. Maintaining a substantial balance in your bank account is a testament to your financial discipline and stability. This can also be a key factor in securing favourable terms for credit cards.  

To increase your spending power, opt for a Fibe Axis Bank Credit Card and enjoy up to 3% cashback on your transactions. It is India’s first numberless credit card that links to your UPI ID, so it offers better security against credit card fraud and identity theft.  

Moreover, you can enjoy a 1% fuel surcharge waiver and 4 free visits to domestic lounges. Download the Fibe App or register on our website to get the Fibe Axis Bank Credit Card today!  

FAQs on Monthly Average Balance 

Can I set up alerts to track my monthly average balance?  

Yes, you can set customisable alerts to track your MAB via net banking or mobile banking.  

Can overdrafts affect my monthly average balance?  

Overdraft is a short-term loan to withdraw money against your savings or current account. Hence, it doesn’t affect the MAB.  

Are there any rewards for maintaining a high monthly average balance?  

By maintaining a high MAB, you can get some advantages. You can get rewards such as lifestyle benefits, personal loans at a preferential interest rate and discounts on other financial products. 

What does mab stand for? 

MAB is commonly known as Monthly Average Balance in banking term.

ELSS Explained: Full Form, Lock-in Period & Withdrawal Process

If you’re wondering ‘what is ELSS mutual funds’ and why they are such a popular tax-saving option, here’s a quick answer: An Equity-Linked Savings Scheme (ELSS) is a mutual fund that lets you enjoy dual benefits – wealth creation and tax savings. The ELSS mutual fund full form is Equity-Linked Savings Scheme and these funds primarily invest in equity (shares and securities). They come with a 3-year lock-in period, the shortest among all tax-saving instruments under Section 80C.  

Since ELSS returns depend on the stock market, the risk is higher compared to fixed deposits or PPF. But if you stay invested longer, the potential returns are usually much more attractive. This makes ELSS a smart choice for those who want to grow their money and reduce tax liability at the same time. 

What are ELSS Mutual Funds? 

ELSS funds combine the benefits of stock market growth with tax deductions. Your investments qualify for tax savings under Section 80C of the Income Tax Act, 1961. 

List of ELSS Mutual Funds 

Some popular ELSS options you can explore are: 

  • Axis Long Term Equity Fund 
  • Mirae Asset Tax Saver Fund 
  • HDFC Tax Saver Fund 
  • ICICI Prudential Long Term Equity Fund 
  • SBI Magnum Tax Gain Fund 

Things to Consider Before Investing in ELSS 

Before choosing ELSS, keep these points in mind: 

  • Compare returns of different ELSS schemes 
  • Check the fund house track record for stability and past performance 
  • Prefer funds with a low expense ratio 
  • Decide between SIP or lump sum investment 
  • Remember that each SIP instalment has its own 3-year lock-in 

Features of ELSS Mutual Funds 

Here’s why ELSS is a preferred choice: 

  • 3-year lock-in (shortest among all Section 80C investments) 
  • Higher return potential due to equity exposure 
  • Flexibility – start with small or large amounts 
  • Diversification across equity and debt instruments 
  • Tax savings up to ₹1.5 lakh under Section 80C 

How Does ELSS Funds Work? 

When you invest in an ELSS, most of your money goes into equities and a smaller portion may be allocated to debt. This balance provides growth potential while managing some risk. 

Since returns are market-driven, they are not guaranteed. However, holding your investment for longer than the 3-year lock-in generally gives better results, as equities tend to perform better over time. 

How Should You Invest in an ELSS Fund? 

You can invest in ELSS in 3 simple ways: 

  • SIP (Systematic Investment Plan): Invest small amounts monthly for discipline and market averaging. 
  • Lump Sum: Invest a large amount at once if you have surplus funds. 
  • Goal-based: Align investment with your financial goals (tax savings, long-term growth, etc.). 

Why Should You Invest in ELSS Tax Saving Mutual Funds? 

The benefits of investing in ELSS include: 

  • Dual advantage: tax savings + wealth growth 
  • Shortest lock-in (3 years) compared to PPF (15 years) or NSC (5 years) 
  • No upper cap – invest any amount as per your comfort 
  • Exposure to equities for higher long-term gains 
  • Option to stay invested even after 3 years for compounding 

Taxation Rules of ELSS Funds 

Here are the key ELSS funds withdrawal rules and taxation details: 

  • Eligible for deduction up to ₹1.5 lakh under Section 80C 
  • LTCG Tax: Gains above ₹1 lakh in a financial year are taxed at 10% 
  • Gains up to ₹1 lakh remain tax-free 
  • Dividends are taxed as per your income slab 
  • These ELSS mutual fund withdrawal rules make it clear that ELSS is tax-efficient for long-term investors 

How to Withdraw From ELSS? 

Here’s how to redeem ELSS mutual funds once the lock-in ends: 

  • Wait until the 3-year lock-in is over. 
  • Place a redemption request with your fund house. 
  • The amount will be credited directly to your bank account. 
  • For SIP, each instalment has its own 3-year lock-in. 
  • Instead of breaking investments early, continue beyond 3 years to benefit from compounding. 

(Knowing the ELSS funds withdrawal rules helps you plan your liquidity needs better.) 

Instead of redeeming your ELSS early, you can unlock liquidity without breaking investments. With Fibe Loan Against Mutual Funds, you can get quick access to funds up to ₹10 lakhs by pledging your mutual fund units, keeping your investments intact while meeting urgent financial needs. Apply easily online with minimal paperwork.  
Download the Fibe App today! 

FAQs on ELSS Withdrawal Rules and Tax Benefits 

Is ELSS a good investment? 

 Yes. ELSS is popular because it offers tax savings and wealth creation. Ideal for long-term investors with moderate-to-high risk appetite. 

Is ELSS better than PPF? 

 ELSS has market-linked returns and a 3-year lock-in, while PPF has fixed returns and a 15-year lock-in. Choose based on your risk tolerance. 

Can I invest ₹1 lakh in ELSS? 

 Yes, there’s no maximum cap. Some funds may have a minimum entry requirement. 

What is the lock-in period of ELSS? 

 ELSS has a 3-year lock-in period. 

Is ELSS taxable after 3 years? 

 Yes. Gains above ₹1 lakh are taxed at 10% LTCG, while up to ₹1 lakh remains exempt. Dividends are taxed as per your slab. 

What is Value Added Tax in India and How It is Calculated

If you’re curious about the full form of VAT tax, here’s your answer: VAT stands for Value Added Tax, meaning a tax collected at each stage of production and distribution of goods. While the Goods and Services Tax (GST) has replaced most indirect taxes since 2017, some goods still fall under the old VAT system.  
 
Here, we will help you understand the value added tax meaning, how it works and where it still applies today. Keep reading to get clear insights into VAT and its role in India’s taxation system. 

Value Added Tax (VAT) Meaning 

 It is a type of indirect tax that the Central Government levies on sold goods. VAT is collected starting from manufacturing till the sale is completed by the retailer. It works in such a way that the consumer at the end of the supply chain pays a higher tax amount.  

Value-added tax is a multi-point check system for collecting tax at each point of purchase. 

  • When dealers collect the tax amount from the consumer, they pay back to the government.  
  • Before paying the government, they deduct the tax paid for the purchase, which eliminates the tax-on-tax effect.  
  • The VAT law changes depending on the state and Union Territory.  
  • There are certain gods that are exempt from VAT.  
  • The list of goods and their threshold limit varies from state to state.  

Also Read: Direct Tax vs Indirect Tax  

Understand How it Works

Knowing what is VAT and having a brief knowledge of input and output tax can give you a clear idea of how value-added tax works.  

  1. Input Tax 
  • It is the tax amount paid by the dealers during their purchases.  
  • VAT is not only applicable to goods that are purchased for resale.  
  • It is also applicable to capital purchases such as machinery and equipment.  
  • Most of these purchase comes under value-added tax (VAT) application.  
  • However, in most cases, companies can claim VAT credit.  
  1. Output Tax 
  • It is the tax amount paid by the consumer while purchasing taxable goods from dealers.  
  • Anyone registered for VAT can collect the tax amount; it may be an individual, business or partnership.  
  • If you make a sale more than the prescribed limit of ₹5 lakhs or ₹10 lakhs, depending on the state, you should opt for VAT registration.  

The registration of VAT means enrolling your company in the list of corporations that are eligible for tax returns. It is mandatory for all manufacturers involved only in the production of goods and services to register for value-added tax (VAT).  

VAT is different from sales tax, and is charged at various stages of the production process. On the other hand, sales tax is charged at the end user purchase of goods and services.  

What is VAT Registration? 

Here are some key points to remember when registering for VAT: 

  • Mandatory for businesses selling goods that still attract VAT 
  • Register with the local Commercial Tax Department 
  • Submit ID proof, business proof, PAN, and bank details 
  • Get a VAT registration number (TIN) 
  • Legally collect VAT, claim input credit, and file VAT returns 

What is the Procedure for VAT Online Registration? 

  • Visit your state’s commercial tax department website. 
  • Create an account or log in as a new user. 
  • Fill out the online VAT registration form with business details. 
  • Upload required documents (ID proof, address proof, business proof). 
  • Pay the applicable registration fee online. 
  • Submit the application and note the acknowledgment number. 
  • Schedule an inspection if required by the department. 
  • Once approved, download your VAT registration certificate. 

Also Read: What is Advance Tax?  

VAT Rates in India 

  • 1% – 5%: Essentials like food grains, medicines, and certain daily-use items 
  • 12.5% – 15%: General goods like electronics, furniture, etc. (varies by state) 
  • 20% and above: Specific goods like liquor and petroleum products 
  • Varies by State: Each state sets its own VAT rates for certain goods not covered under GST 

How is VAT calculated? 

Using a simple calculation formula, you can calculate value-added tax: 

VAT= Output Tax – Input Tax 

For example, say a dealer pays a value-added tax of 10% on the purchased goods at ₹100. Then, s/he sold the product at ₹150 to you, collecting a VAT of ₹15 from you. Then, the input tax here is ₹10, and the output tax is ₹15. Hence, the dealer has to pay only ₹5 as VAT while purchasing the goods.  

With this example, you have a clear financial understanding of how indirect tax works. Whether you run a business or have a job, taxes can weigh on your income. If you’re dealing with a cash crunch or need to achieve a life goal, the Fibe Quick Cash Loan is an excellent choice. It offers up to ₹5 lakhs which you can repay across flexible tenure of up to 36 months.  

It also comes with the option to pre-close the loan without any penalties. You can get it with nominal paperwork and affordable interest rates. Register on our website or download our Fibe Loan App to get a quick loan online.  

FAQs on Value Added Tax 

Can I claim VAT back on business expenses?  

Yes, you can claim VAT on business expenses after registering your business for VAT.  

Are there any exemptions from VAT?  

The VAT law changes depending on the state and union territory. Depending on the VAT law, some goods and the threshold limit for exemption are exempted from VAT.  

Where can I find more information or get help with VAT issues?  

You can get information from the Goods and Services Tax, CBIC, and Government of India and register any complaint related to VAT issues.  

What happens if I miss the VAT return deadline?  

In case of delays in filing the return, you shall be liable to pay ₹100 per day, for which the maximum amount is calculated quarterly. 

Everything You Need to Know About API Banking Services

Banks with APIs are offering enhanced experience. Many fintech firms appreciate API and the ground-breaking effectiveness it entails. They also have implemented this third-party communication method, which helps in:

  • Centralising consumer data
  • Improving security
  • Quickening development
  • Better scalability

This one tool is modernising the banking system globally and in India. To understand what is API banking and how it benefits the banking system, read on.

What is API Banking? 

The API full form in banking is Application Programming Interfaces. This is a technology that bridges the client with their banks. Designed with a combination of rules and protocols to prioritise interactions optimally, APIs help consumers access banking services more conveniently.

How API Works 

Here are some aspects of how API banking helps consumers.

  • Easy Updates: Banks with APIs update individual components of their systems without affecting the entire infrastructure.
  • Isolated Changes: APIs ensure that the overall system remains stable and reliable, even during periods of development or maintenance.
  • Seamless Integration: They provide a standardised way for different systems to interact, making it easier to integrate new services or applications.
  • Small Improvements: APIs enable banks to implement small, incremental improvements to their systems, which is a less risky approach than large-scale overhauls.

Types of APIs 

There are majorly four types of APIs. Every kind of API offers a specific usage, the details of which you can find below:

  • Public API: This is a third-party tool used for smoother interactions
  • Private API: It ensures security and optimises organisational tasks
  • Composite API: This type of API enhances performance and ensures speed
  • Partner API: This is a communicative device between developers and financial organisations

Benefits of API Banking 

There are several significant advantages of using API in banking systems, such as:

  • Banks with APIs show real-time access to transactions
  • They offer better traffic to the banking institution
  • APIs hasten consumer data access
  • They simplify access to multiple applications and prompts
  • They enhance connectivity between transactional and financial accounts
  • APIs provide better security with diversified ways to develop an app

Apply for Instant Cash Loan

Differences Between Open Banking and API Banking 

While API banking is a comprehensive way to approach a customer, open banking is another technological advancement changing the financial ecosystem. Open banking is a concept that allows you to share certain financial information within banks. Check out how APIs in banking and open banking differ from each other: 

ParametersOpen BankingAPI Banking
AidsTailors investment plansReal-time updatesPrice comparisonsSaving NotificationsTips on budgetCore Banking System (CBS)Customer onboardingPayment InfrastructureCustomer engagement support
BenefitsBetter reimbursementEclectic borrowing optionsFlexibility of your financesBetter business opportunitiesEasy integrationBetter scalabilityData exchange accessibilityBoosts connectivityFast-to-marketNew revenue streams

The power of API banking means seamless integration of banking services into your everyday life. For instance, leveraging India Stack, the largest API in the world, Fibe fast-tracks the loan disbursement process. 

Once you apply for a Fibe Instant Personal Loan, you can get up to ₹5 lakhs at an affordable interest rate. The repayment tenure is also flexible, as you can repay your loan within 3 to 36 months. You can be debt-free earlier with zero foreclosure charges. Download our Personal Loan App or register on our website to get started.

FAQs on API Banking 

Are there any additional fees for using API banking services? 

Typically, customers do not have to pay additional charges directly to utilise API for different banking services.

Can I use the API for international transactions? 

Yes, APIs connect financial institutions across borders, making it easier for customers to make quicker international payments.  

How do I ensure that my API integration is scalable? 

To ensure that API integration is scalable, you can:

  • Implement caching mechanisms
  • Utilise rate limiting
  • Leverage cloud services
  • Conduct thorough testing to handle increasing traffic and diverse usage scenarios

How do I report security vulnerabilities or issues with the API? 

You can find several tools online that will scan and identify any common vulnerabilities. You need to review your code and monitor your API before there are any potential threats.

What is Fuel Surcharge Waiver in Credit Card: Meaning, Benefits & How It Works 

This article explains what fuel surcharge waiver means on a credit card, how the waiver process works in practice, and what conditions determine whether a transaction qualifies. It also compares 5 credit cards with fuel surcharge waiver benefits and shows how to get the most out of the feature. 

 
Every time you pay for petrol or diesel with a credit card, there is a small extra charge sitting quietly on your bill. Most people do not notice it. But if you fill up every week, that charge adds quietly over a year. That is what a fuel surcharge is. And a fuel surcharge waiver is simply your credit card reversing it.  Here is how the whole thing works and why it matters more than you think. 

What is a Fuel Surcharge on a Credit Card? 

Petrol pumps in India charge a small processing fee when you pay by card. Call it a convenience fee, a processing charge whatever the label is, it lands on your bill as a fuel surcharge. It typically sits between 1% and 3% of the transaction value. Not enormous on its own. But add it up across a month of weekly refueling and it starts to look like a real number. 

QUICK STAT 

A 1% surcharge on ₹4,000 of monthly fuel spend adds up to ₹480 over a year — enough to notice on an annual card fee comparison.  
Source: Illustrative calculation

Fuel Purchase Amount Surcharge at 1% Total Charged 
₹1,000 ₹10 ₹1,010 
₹2,500 ₹25 ₹2,525 
₹4,000 ₹40 ₹4,040 

What is a Fuel Surcharge Waiver? 

A fuel surcharge waiver is exactly what the name says — your card issuer gives that charge back to you. It either does not apply in the first place, or the amount is reversed on your statement.  Let us say you fill up for ₹2,000. A 1% surcharge adds ₹20 to your bill. If your credit card has a fuel surcharge waiver and the transaction qualifies, that ₹20 comes back. You effectively paid only for the fuel.  

How Does the Fuel Surcharge Waiver Actually Work? 

Most people assume they need to do something to trigger the waiver. They do not. The process is automatic. 

  1. You pay for fuel at a petrol pump using your credit card 
  1. The surcharge gets added by the merchant 
  1. Your card issuer checks the transaction; is the amount within range? Is the merchant code correct? Have you hit your monthly cap? 
  1. If everything checks out, the surcharge is reversed — either instantly or later in the billing cycle 
  1. Net surcharge paid: zero 

PRO TIP 

You do not need to raise a request for the waiver. It applies automatically when the transaction meets the card’s conditions. 

Eligibility Conditions You Should Know 

Here is where a lot of people get caught. The waiver does not apply to every fuel transaction by default. Your card has its own rules. 

Condition What It Means 
Minimum transaction amount Fuel purchase may need to be ₹400 or ₹500 minimum 
Maximum transaction cap Waiver may only apply up to ₹5,000 per transaction 
Monthly waiver limit There is usually a ceiling on total waiver per billing cycle 
Eligible fuel stations Some cards restrict to HPCL, IOCL or other partner pumps 
Merchant category code Transaction must be coded as a fuel purchase by the pump 
Exclusions Wallet top-ups, cash withdrawals, non-fuel purchases at pumps do not qualify 

WATCH OUT 

If you are not sure about your card’s specific rules, check the MITC document or call customer support. It takes two minutes and saves confusion later. 

Benefits of a Fuel Surcharge Waiver Credit Card 

The obvious benefit is saving itself. Regular commuters like officegoers, sales professionals, families with cars, delivery riders — all pay fuel surcharges multiple times a month. A waiver removes that ongoing cost.  Beyond that, there are a few other advantages worth noting. You avoid carrying cash to fuel stations, which is genuinely useful late at night or at highway pumps. Some fuel credit cards also stack rewards on top of the waiver — cashback, reward points, or fuel points you can redeem later. And if your card has a low or zero annual fee, the maths becomes straightforward: the waiver alone may save you more than the card costs you annually. 

DID YOU KNOW? 

The practical test: think about how much you spend on fuel in a month. If it is ₹3,000 to ₹5,000, a 1% waiver saves you ₹360 to ₹600 a year. Does your card’s annual fee exceed that? 

Five Credit Cards with Fuel Surcharge Waiver Benefits 

Here is a quick comparison. Fees and offers change, so always confirm the latest details directly with the issuer before applying. 

Credit Card Fuel Surcharge Waiver Other Offers Fees 
Fibe Axis Bank Credit Card 1% waiver on ₹400–₹5,000 transactions 3% cashback on dining, entertainment, local commute; complimentary lounge visits No joining fee, no annual fee 
IndianOil Citi Titanium Card 1% waiver at IndianOil outlets Turbo Points on IOCL fuel spends, redeemable for fuel Check latest fee schedule — Citi cards have transitioned to Axis Bank 
IndianOil HDFC Bank Credit Card 1% waiver at IOCL stations Fuel Points on all spends, redeemable for fuel Joining and annual fees may apply; fee waiver on eligible spends 
ICICI Bank HPCL Coral Credit Card 1% waiver at HPCL pumps Cashback and rewards on HPCL fuel spends Joining and annual fees may apply; annual waiver on spend criteria 
Standard Chartered Super Value Titanium Waiver on eligible fuel spends Cashback on fuel and selected categories Annual fee may apply; waiver on meeting annual spend 

How to Get the Most Out of Your Fuel Surcharge Waiver? 

Getting the card is the only first step. Here is where most cardholders leave money on the table. 

  1. Use partner pumps if your card specifies them. A waiver restricted to HPCL or IOCL means nothing if you always fill up elsewhere. 
  1. Keep transactions within the eligible range. If the waiver applies between ₹400 and ₹5,000, and you usually spend ₹6,000, check whether splitting is possible — though confirm first with the pump and your card issuer. 
  1. Watch the monthly cap. Once you hit the maximum, the rest of that billing cycle’s fuel purchases carry the surcharge as normal. Knowing your cap lets you decide when to switch to a different payment method. 
  1. Look at the full card value, not just fuel. A card saving you ₹500 per year on fuel but ₹2,000 in dining and commute cashback is a far better deal. Evaluate total benefit. 
  1. Check your statement monthly. Waivers appear as credit entries. If one that should have applied is missing, contact your issuer with the date, amount and pump location. 

Checklist Before You Apply for a Fuel Waiver Card 

  1. What is the waiver percentage? 
  1. What is the minimum transaction amount for eligibility? 
  1. What is the maximum transaction amount covered by the waiver? 
  1. Is there a monthly cap, and how much is it? 
  1. Does the waiver apply at all pumps or only partner networks? 
  1. What are the joining and annual fees? 
  1. Does the card offer cashback or rewards on other everyday spend categories? 
  1. Will you use the card consistently enough for savings to outweigh the fees? 

Why Look at the Fibe Axis Bank Credit Card? 

If you want everyday credit card value alongside fuel savings, the Fibe Axis Bank Credit Card is worth a look. It offers a 1% fuel surcharge waiver on transactions between ₹400 and ₹5,000. On top of that, 3% cashback applies to dining, entertainment and local commute — categories most urban cardholders spend across every week.  There are no joining fee and no annual fee. The card is numberless, keeping your card details off the physical card and inside a secured app environment. It also supports UPI linking for quick digital payments.  For someone who refuels regularly and wants a card that earns on daily spending categories, it covers a lot of ground without any fee overhead. 

FAQs On Fuel Surcharge Waiver in Credit Cards 

1. What does fuel surcharge waiver mean on a credit card statement? 

It means the surcharge your credit card issuer waived or reversed on an eligible fuel transaction. It typically appears as a credit entry on your statement, offsetting the surcharge that was initially charged at the petrol pump. 

2. How is fuel surcharge calculated on a credit card? 

The surcharge is a percentage — usually 1% to 3% — of the fuel transaction amount. So on a ₹2,000 fill-up with a 1% surcharge, you would be charged ₹20 extra. If your card’s waiver applies to that transaction, ₹20 gets reversed. 

3. Is the fuel surcharge waiver available at every petrol pump in India? 

Not always. Some cards extend the waiver to any fuel station. Others restrict it to partner networks like HPCL or IOCL. Check your card’s specific terms — this one detail can affect whether you actually benefit from the feature. 

 4. Is there a monthly limit on how much surcharge can be waived? 

Yes, most cards set a monthly ceiling. Once you reach it during a billing cycle, additional fuel transactions will carry the surcharge as normal. The cap varies by card and is typically mentioned in the MITC or product terms. 

5. What happens if the waiver was not applied even though I meet the    conditions? 

Contact your card issuer’s customer support. Keep the transaction date, amount and fuel station details handy. If you met the waiver conditions and it was not applied, most issuers can investigate and reverse the charge. 

6. Can I transfer fuel surcharge waiver benefits to another card? 

No. The benefit is tied to the specific credit card it is issued with. It cannot be transferred to another card account. 

7. Does the fuel surcharge waiver apply to wallet recharges at petrol pumps? 

Generally, no. Wallet top-ups made at petrol pump outlets are not classified as fuel purchases and typically do not qualify for the surcharge waiver. Only direct fuel transactions at the pump are eligible. 

Know About Contactless Payments and Its Quick Set Up on Your Smartphone

Completing a contactless transaction when paying for any goods or services can be a safer way to go about it. This was popularised after the pandemic and includes the usage of credit and debit cards during payment offline, allowing you to pay without any physical contact. 

There are many options to make effortless payments through your smartphone. It has become the new norm today, yet many are unaware of its full potential. By having a better understanding of how this works, you can make payments without any hassle.

Brief Introduction to Contactless Payments 

It is a safe and secure method of making payments without cash. You can use your chip-enabled cards, such as credit and debit cards, for payment. While making a contactless payment, you can tap or wave your card over the card reader. 

You can make payments faster without providing your PIN using such payment methods. This can enhance your checkout speed while paying toll tax, paying for parking and more. Due to an increase in the adoption of contactless payments, the RBI has increased the payment limit transactions from ₹2,000 to ₹5,000 without the need for a PIN.

Benefits to Keep in Mind 

It is commonly misunderstood that contactless payments may pose a security threat, revealing the card’s information. The truth is that it is difficult for unauthorised logins as the card’s data is encrypted. This offers you more safety in carrying out such payments.

Fraudsters can steal your information from your magnetic chip by cloning it but tapping your card protects you against handing over your card. Additionally, swiping a card manually and entering your card details is a hassle and increases the risk of fraud. Thus, contactless transactions can cut down the processing time while ensuring better protection. 

Another benefit of such payments is that you also pay using your smartphone or mobile. This is extremely beneficial when you want to make an urgent payment but forget your card at home. This involves using your UPI ID and an app that is connected to your bank account. You only have to scan the QR code using your smartphone and complete the transaction by entering the OTP or PIN on your own device. 

Also Read: How to Create UPI ID?

Mechanism of Contactless Payments 

Non-UPI contactless payments use radio frequency identification technology embedded in a card’s microchip. This makes the process successful without needing the personal identification number. When you hold the card near the point-of-sale terminals, the merchant identifies this with a special symbol.

The symbol resembles a wifi logo. Holding the card near the terminal transmits information electronically from the card to the bank. After accepting the tap, it signals success with a beep or light. The bank analyses the transaction and upon approval, the transaction is completed.

How to Set It Up on a Smartphone? 

Now that you know the process and meaning of contactless transactions, you can use this facility smartly. To get going, you can set it up on your smartphone. This one-time set-up will enable you to access quick and safe transactions with just a tap. Follow the steps to set tap-and-pay on your smartphone:

Step 1: Log in to your official net banking account or mobile application

Step 2: Select the ‘tap and pay’ option

Step 3: Enable the option

Step 4: Make it the default

Also Read: How to Identify Financial Fraud?

Contactless payments offer flexibility and security and may bring even more innovation to the fore in the near future. Today, you can combine the comfort of using credit cards with the safety and security of mobile phones via UPI. 

If you’re looking for a credit card that offers such convenience, the Fibe Axis Bank Credit Card can be a smart choice. It is India’s first numberless credit card that links to your UPI ID, so you can scan and pay in seconds.

What’s more, you earn a flat 3% cashback on entertainment, local commutes and food. Get complimentary domestic lounge access and fuel surcharge waiver discounts with this credit card, too. Download the Fibe App or register on our website to get the Fibe Axis Bank Credit Card today!

FAQs on Contactless Payments 

Are there limits to contactless payment transactions? 

Yes, there is a limit of ₹5,000 on contactless transactions without using a PIN. For a higher amount, you need to provide your PIN.

What should I do if a contactless payment fails? 

If your contactless payment fails, try a UPI app that is linked to your bank account. You can also get in touch with the financial company whose card you are using. 

How do I deactivate contactless payments on my card? 

You can deactivate it on your card by logging into your account and turning off the functionality. 

Can I use my contactless payment card with a damaged chip? 

No, you cannot use your card for contactless transactions with a damaged chip.

Know How To Pay Rent With a Credit Card and Its Benefit

Wondering how you can pay rent with a credit card? Paying for recurring expenses without any hassle of remembering the due dates is among many attractive features of using credit cards. You can pay the monthly amount directly to your landlord’s account using a credit card.

Apart from the convenience, there are several other benefits attached to the payment process. By understanding the process properly, you can take maximum advantage of using a credit card to pay rent. 

Advantages of Rent Payment With a Credit Card 

Amongst the other responsibilities, certain routine payments may get overlooked due to your busy lifestyle. You can enjoy stress-free home rent payments by setting a standing instruction for rent payments. Here are a few added benefits:

  • Utilising the Grace Period: You can make use of the interest-free period of 45-60 days and repay the dues over an extended period. It can be most helpful in case of emergencies, as you can use the grace period as a financial buffer. This flexibility helps you allocate funds towards other liabilities for the month during a cash crunch.
  • Earning Rewards: By paying rent with your card, you can earn reward points, cashback and discounts. Ensure you select a credit card that provides a lucrative reward system on bill payments. That way, you can save more while paying the rent.
  • Making Use of Automatic Payments: By using the auto-debit facility for rent, you provide standing instructions on your credit card to make rent payments on a particular date every month. This ensures seamless deductions and eliminates any chance of missing your payment date.
  • Earning Welcome Bonus: Many issuers provide a sign-up bonus when you get the card. You can access the bonus by spending a specific amount in a certain amount of time. By paying rent using your card, you can cover a large amount of the required threshold. That way, you can earn the sign-up bonus without overspending.
  • Getting a Statement as Proof:  You receive a statement showcasing your payment. This can act as proof of rent payment should you need to send it to your landlord. In addition, paying your rent this way also enhances your credit score. This is because timely payments are recorded in your credit history and reflect positively in your records.

How to Pay Rent Using a Credit Card? 

By following the needed steps, you can ensure a smooth payment procedure:

  • Step 1: Confirm with your landlord whether they’re accepting rent payments via credit card 
  • Step 2: Choose a secure and safe platform to pay rent, create an account by providing your details and link your credit card
  • Step 3: Set the necessary details like due date, amount and landlord’s details
  • Step 4: Check the details and confirm the payment

It is crucial to note that some third-party platforms may charge transaction or processing fees. Despite the convenience, this may outweigh the related benefits. Check this before proceeding with such an option. Besides that, you should keep an eye on your credit limit for other expenses, as there is a chance of maxing out. This can have an adverse effect on your credit score.

As of 2024, many credit card companies have stopped offering rewards on rent payments. This is also due to the fact that the Reserve Bank of India has expressed its concerns about payments between two individuals rather than an individual and a verified merchant. Such payments may be misused, which is why this facility may soon be banned. 

While it is still allowed, knowing how to pay rent using a credit card can help you during a difficult time or increase your convenience. You can also use your credit card for various other payments, such as electricity bills, phone bills and more. The Fibe Axis Bank Credit Card can be an excellent choice for such recurring payments with an interest-free period of up to 50 days. 

You can also enjoy hassle-free UPI payment and other benefits like a 1% waiver of fuel surcharge and free access to domestic airport lounges. Download the Fibe App or register on our website to apply for this credit card and enjoy its benefits without any annual and joining fees!

FAQs on Rent Payment Using Credit Cards 

Can I earn reward points or cashback when paying rent with a credit card? 

As of 2024, most financial institutions have discontinued reward points or cashback if you use a credit card to pay rent. However, you may be able to access benefits if you use certain third-party platforms or certain cards.

Are there any limits on the amount I can pay with a credit card? 

Yes, you can only make transactions within your credit card’s credit limit as well as the limit the issuer has set on rental payments, if any. 

Is it safe to pay rent with a credit card? 

Yes, it is safe to pay rent with a credit card. The transaction also gets recorded in the card statement that you receive at the end of the month. 

Are there any specific credit cards that offer better benefits for rent payments? 

Since the features are updated often, check the benefits related to rent payments by reading the MITC document on credit cards. 

How does paying rent with a credit card impact my credit card balance and utilisation? 

When you make any transaction using your card, including rent payments, your credit limit is reduced by the corresponding amount. Therefore, you can only use your card up to the remaining credit limit for that particular cycle. Similarly, depending on your credit limit and rent amount, your credit utilisation ratio may also increase.

How to Invest as a Beginner: A Complete Guide

To find the best option for investment as a beginner, build your knowledge base and understand your risk appetite. For the best results, strive to strike a balance between secure investments and diversification. Depending on your investment horizon and risk appetite, you can consider a wide variety of instruments available in India.

As a beginner, you will require a dynamic strategy based on your ever-evolving financial aims and circumstances. 

Top Investment Options in India: 

Real Estate 

It is one of the best option for investment and the most popular choice offering growth and wealth-building opportunities. It is a trusted choice as it has given stunning returns over the years. There are numerous options available to you, such as:

  • Investing through REITs
  • Buying a commercial property
  • Investing in a residential property

While there is no minimum limit or maximum cap, remember that you may need a large sum for the initial investment. Returns may vary depending on the market value and location. Like every investment option, it has its own set of risks and drawbacks.

For one, it’s difficult to liquidate by finding the right buyer and selling the property. In case of a rush, you may have to sell it at a highly discounted value. Nevertheless, in most cases, it gives some of the best returns on investment.

National Pension Fund 

This is a contribution scheme which works both as a savings and a retirement fund. It is market-linked, has gained more demand over the years and is recommended among top investment options today. The government is adding improved features and benefits to encourage more investors, making it a lucrative option. 

It offers you:

  • Tax benefits
  • Regular pension income

You can choose where you want to allocate your assets. However, it is crucial to note that in NPS, the maximum equity allocation can be 75% by the age of 50 years and it has a lock-in period. 

Also Read: Tax Benefits Under NPS

Government Bonds 

To encourage more investment in sovereign bonds, the Government of India offers direct purchase of bonds to investors. Both state and central governments issue these bonds.

  • The bonds issued by the state government are state development loans
  • The bonds issued by the central government are referred to as G-sec or simply government bonds

Yon needs a bank account and a demat account to hold a government bond, similar to any other investment. If you are looking for a relatively secure and best option for investment, consider this. 

You can also invest in government securities through mutual funds. The maturity period can be three years or more, depending on the offering. Taxation on government bonds works based on your income bracket and applies to the interest-generated bond. It has a fixed return throughout the bond’s life cycle till the maturity period. All these factors make it one of the best options to invest in India.

Apply for Cash Loan

Sovereign Gold Bonds 

To access this kind of investment, you don’t need to buy physical gold as an underlying asset. If you are looking for an investment with higher returns, this may be the ideal one for you. It is issued by the RBI at regular intervals through both public and private sector banks. You can also invest using your demat account. It has a maturity period of 8 years. 

For individual investment, you can invest up to the price of 4 kgs of gold. Interest earned on SGBs is taxable, whereas the maturity amount is exempt from taxation. It has low to medium risk, making it one of the best options to invest in India.

Considering the increasing inflation rate, choosing an investment with higher returns can be a smart choice. Investing is built on a bedrock of savings, which you can boost through a smart financial tool like the Fibe Axis Bank Credit Card. It is India’s first numberless credit card and gives you Enjoy 3% cashback on your transactions. 

It also links to your UPI ID, so it gives better security against credit card fraud and identity theft. 

You can get access to domestic airport lounges and fuel surcharge waiver discounts, too. Download the Fibe App or register on our website to get the Fibe Axis Bank Credit Card today!

FAQs on Top Investment Options for Beginners 

What are the risks associated with beginner investments? 

For beginners, choosing the best ROI investments can be difficult. It is with experience and knowledge that you can build a successful and profitable investment portfolio. Some of the risks you may face are losing your capital, letting your emotions get in the way of long-term investments and pursuing trends without understanding market dynamics. 

Should I invest in stocks or mutual funds as a beginner?

It may be more appropriate to invest in equity mutual funds as a beginner since the fund manager has experience in allocating your investment to the right stocks and sectors. 

Should I diversify my investment portfolio as a beginner? 

Yes, you can diversify your portfolio in terms of maturity period, tax savings, risk exposure and other factors and get the best returns for investment.

Difference between Mobile Banking and Online Banking

When it comes to convenience in financial services, both mobile banking and online banking play a vital role in offering instant access and data. While online banking has been around for longer, mobile banking is relatively new. Both options provide access to financial services but have their separate advantages. 

Many financial institutions offer both services to add more value to your banking experience. By understanding the similarities and differences between online banking and internet banking you can decide what to use and when. 

Digital Banking Vs Mobile Banking

Using both, you can access numerous services from the comfort of your home or on the go. This includes:

  • Checking account balance 
  • Paying credit card bills
  • Paying loan EMIs
  • Tracking credit card due amount and date
  • Setting up your mutual fund investment 
  • Booking a fixed deposit 
  • Checking the transaction history of credit card or account

The list goes on. To enjoy both, internet banking and mobile banking facilities, you need to log into your account with your customer ID and password. These credentials are a must every time you log in. However, you can set up a login PIN for mobile banking to save time and gain access faster and more conveniently. 

Benefits of These Facilities

Here are some factors that you can consider when comparing the benefits of these two banking options. 

Convenience

Both facilities require an internet connection to function. However, in the case of Internet banking, you need a laptop or PC. While you can use a smartphone, the experience may not be fully optimised for it. Via mobile banking, you can conduct financial transactions through your mobile phone with ease. 

Many financial institutions have come up with an SMS feature that you can use to avail some features of mobile banking. Hence, you can conduct a few activities even without the internet. This can be helpful during travelling or if you are in a region where internet access may be impaired. 

Safety

Both services have their own security measures. In the case of internet banking, the financial institution provides you with:

  • Username 
  • Password

You may need one-time passwords or security tokens for added safety. In mobile banking, the authentication needs vary depending on the financial institution and what you set up using your smartphone. This may require:

  • PIN
  • Two-factor authentication
  • Biometric scans 

Functionality

Mobile banking started off by offering basic facilities like:

  • Fund transfer
  • Locating nearby ATMs
  • Ordering a chequebook 
  • Checking your statement or account history 

Today, you can do a lot more with it:

  • Invest in fixed deposits, mutual fund schemes and more 
  • Pay your bills or EMIs
  • Open a bank account 
  • Apply for a loan or credit card 
  • Shop for electronics, book tickets and more using points or your cards
  • Track your spending and use budgeting tools 
  • Get help via chatbots or customer support teams 
  • Complain, send feedback or contact grievance redressal systems 

Internet banking portals also offer the same or similar services, depending on the financial institution. 

Notifications

Similar to any other application on your phone, a mobile banking app sends push notifications to you. Through these, you can get amazing deals and offers from the financial institution. You can also track purchases, account activity and more. 

Online banking doesn’t have this feature. You can check the ongoing deals and offers by logging in to your banking account. This is one of the major differences between online banking and internet banking.

User Experience

Online banking is dependent on the Internet service and every website varies depending on the financial institution. In the case of mobile banking, the application is focused on optimising the interface for a better user. It may also help you find the services you need quicker than websites. 

Accessibility

You can use any browser on your PC or laptop to access the Internet banking of your financial institution. Most of the features of mobile banking can only be used via a mobile app. You can download the app depending on what kind of device you use, iOS or Android. 

You can choose any option between mobile banking and online banking depending on your financial needs and lifestyle. No matter which one you choose, if you see your account balance as insufficient for big-ticket expenses, get a Fibe cash loan. 

We offer up to ₹5 lakhs with nominal paperwork and affordable interest rates. With no end-use restrictions, you can use the funds without giving any explanations. Enjoy a flexible tenure of up to 36 months with the option to pre-close the loan without any penalties. Register on our website or download the Fibe App now and get started!

FAQs on the Mobile Banking vs Internet Banking

Can I access my account through both mobile and internet banking?

Yes, you can access your account on internet banking and mobile banking using your credentials.

Is mobile banking more secure than internet banking?

Both mobile banking and online banking are secure. They have separate security features, encryption and authorisation processes. 

Can I perform the same transactions on internet banking and mobile banking?

Yes, you can perform the same transactions through both of these options.

Are there any differences in security between Internet banking and mobile banking?

Yes, both of them use separate security measures to safeguard your data. While internet banking uses your credentials, security tokens and OTPs, mobile apps may use biometric scans, PINs and encryption. 

Do internet banking and mobile banking require separate registrations?

Yes, both need separate registrations. For Internet banking, you need a user ID and password. For mobile, you can get a separate password or use a PIN.

What is Comprehensive Income and How Does It Work?

Knowing how to calculate comprehensive income is an important aspect of managing cash flow and budgeting. When it comes to business, keeping a record of all your cash inflows and outflows is a priority. 

Knowing the total earnings from your business venture helps you take calculated risks. You can also decide when and how to expand your business with funds available. This is where a record of comprehensive income becomes important. 

Read on to understand the meaning of comprehensive income, how business is calculated and more.

Introduction to Comprehensive Income

By definition, it is a net gain in the company’s net equity over a specific period of time that results from non-owner sources. In simple words, it is all the income under the name of the business that includes the income from sales of the products/services as well as other sources. 

Here are some pointers that better explain the meaning of comprehensive income. 

  • This includes all the earnings of the company or brand, such as net income and unrealised income
  • Unrealised income is any income from indirect sources such as investment and foreign currency transaction
  • It also accounts for losses to the business from different sources 
  • Businesses can choose any period of reporting to create a statement of comprehensive income for accounting
  • It shows how many assets and liabilities a company helms within a particular period 
  • It also shows the securities available for sale to potential buyers 

Apply for Instant Cash Loan

Why Calculate Comprehensive Income

Both investors and company owners can use this data to analyse the business background. This is because it provides a big picture of the equity or the company’s value. On the other hand, stakeholders can get an idea if the company has investment potential or not. 

If it shows continued growth in income, it means the business strategies are working. On the other hand, business owners can also use this to evaluate their investment and sales practices to garner better results. 

Also Read: Tax Saving Investment Options

Understanding the Statement of Comprehensive Income

This accounting document includes the revenues, profit, expenses, taxes paid, and interest earned on investments. After creating this document, you can calculate the total profits and losses. 

To write this statement, you need to do the following calculations:

  • Add total earnings from sales
  • Subtract the amount paid to buy raw materials and transportation  
  • Deduct the salaries of the employees, rent and other expenses  
  • Add earnings from other operations and other sources 
  • Deduct the gains from discontinued operations 
  • Add gains from business investments and shares

After all this, complete the final calculation to get the comprehensive income. 

Pros and Cons of the Statement of Comprehensive Income

Now that you know what it is and how to calculate it, here are its benefits and limitations. 

BenefitsLimitations 
Gives a comprehensive view of the net earnings and expensesTells you about the areas that need attention and financesHelps gather details for financial planning for business growth  The inclusion of unpaid bills gives distorted ideas, which may lead to misinterpreted dataMisreported data can lead to incorrect predictions about the success of the company It is susceptible to manipulation

You can also check your everyday transactions to plan your next business move with the statement. This document also tells you when you need to borrow funds to maintain cash flow or for any urgent big expense. This includes any urgent repairs or funds for raw materials. After that, you can decide if you can afford to take a loan.

Be it for your business or individual requirements, the Fibe Instant Personal Loan can help you arrange the funds with a streamlined application process. Get up to ₹5 lakhs loan at an affordable interest rate with minimum documents. You can even apply if you don’t meet the eligibility for a traditional loan from a bank. 

This is because we have an alternative scoring mechanism which allows us to extend loans to individuals with low credit scores. Furthermore, we allow you to close the loan without any additional cost. Simply download our Personal Loan App on your smartphone or apply directly on our website.

FAQs on Comprehensive Income

How often is comprehensive income reported?

Different companies have different rules. It can be reported monthly, quarterly, or annually, depending on the company’s reporting practices. 

What impact does comprehensive income have on dividends?

It has a positive correlation as more incomes lead to higher earnings by the stakeholders. 

Where can I find comprehensive income information in financial statements?

You can find all the relevant information on the balance sheet. 

Are there any standard accounting principles for reporting comprehensive income?

Yes, comprehensive income and other accounting details are presented as per the Indian Accounting Standard. 

Can comprehensive income be manipulated?

In most cases, a statement of comprehensive income is used to analyse the profit and loss of the company for accurate calculation. However, it can be manipulated.