In its December 2024 financial coverage assertion, the RBI had introduced the formation of a committee to develop a Framework for Accountable and Moral Enablement of Synthetic Intelligence (FREE-AI) within the monetary sector.
“The Committee has developed seven Sutras to function foundational rules for AI adoption. Guided by these Sutras, the Committee has proposed a forward-looking strategy with 26 actionable suggestions throughout six strategic pillars,” the RBI stated. “The report envisions a monetary ecosystem the place innovation and threat mitigation are aligned.”
The seven sutras outlined as core rules are: Belief is the inspiration; Folks first; Innovation over restraint; Equity and fairness; Accountability; Comprehensible by design; and Security, resilience and sustainability.
The eight-member committee, chaired by Pushpak Bhattacharyya, professor at IIT Bombay, beneficial that the RBI challenge a consolidated AI steering doc. This may function a single level of reference for regulated entities and the broader fintech ecosystem on the accountable design, growth and deployment of AI options.
The committee additionally proposed the institution of a everlasting, multi-stakeholder AI standing committee below the RBI to supply ongoing recommendation on rising alternatives and dangers, and to observe the evolution of AI applied sciences.To deal with AI-related dangers, the report steered increasing product approval processes, client safety frameworks and audit mechanisms to incorporate AI-specific concerns.
