Mumbai, Dec. 5 -- Reserve Bank of India Governor Sanjay Malhotra on Friday said that the central bank will study the pros and cons of the markets regulator Securities and Exchange Board of India's (SEBI) proposal that observed that the banks be allowed to foray into non-agricultural derivatives.

At the post monetary policy meeting press conference, the RBI Governor confirmed that the proposal has come to them just recently.

He also indicated that the Banking Regulation Act may need to be amended for making way for such arrangements for banks.

"That proposal has just recently come to us. We will study that. Under Banking Regulation Act, banks are not allowed to partake in such product/asset class at present. So the current Act may need ...