Consider the following statements : 1. Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues. 2. CAR is decided by each individual bank. Which of the statements given above is/are correct ?
a
1 only
b
2 only
c
Both 1 and 2
d
Neither 1 nor 2
Indian EconomyBanking & Financial RegulationCapital Adequacy Ratio (CAR)BanksOwn fundsLossesAccount-holdersRepay duesRBIBasel norms