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CAR stands for Capital Adequacy Ratio in banking term. This is implemented by RBI in terms of implementation of Basel-II where all banks maintain 12% CAR. Means to say that if Bank lend rs100000 as loan then it always remain 12% of rs100000 with him.
CAR stands for cash adequacy ratio,says that banks must kept amount(which is 12%)for save their risks in bad time.
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