The Reserve Bank of India has established a committee to develop the Framework for Responsible and Ethical Enablement (FREE) of Artificial Intelligence (AI) in the financial sector.
Committee Objectives:
- Assess the current AI adoption levels in financial services in India and globally.
- Review international regulatory approaches on AI with a focus on financial sector practices.
- Identify and address risks associated with AI, proposing mitigation, monitoring, and compliance frameworks.
- Recommend governance measures for the ethical and responsible use of AI in banks, NBFCs, Fintechs, and PSOs.
- Collaboration: The FinTech Department of the RBI will support the committee, with inputs from domain experts, industry representatives, and stakeholders.
- The committee will submit its detailed recommendations within six months of its first meeting.
