RBI's Initiative on Ethical AI in Financial Sector

The Reserve Bank of India (RBI) has taken a significant step towards the responsible implementation of artificial intelligence in the financial sector by forming a committee to develop a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI).

Committee Composition

• Chairman: Pushpak Bhattacharyya, Professor, Department of Computer Science and Engineering, IIT Bombay.
• Members: 7 others from Industry and academia. 

Objectives and Responsibilities

• Assess the current level of AI adoption in financial services, both globally and in India.
• Review regulatory and supervisory approaches to AI with a focus on the financial sector worldwide.
• Identify potential risks associated with AI and recommend strategies for evaluation, mitigation, and monitoring.
• Suggest a framework for governance and responsible, ethical adoption of AI models in the Indian financial sector.
• Provide recommendations on any other matters related to AI in the Indian financial sector.

Timeline and Support

The Committee is expected to submit its report within six months from its first meeting. The FinTech Department, Central Office, Reserve Bank of India, will offer secretarial support to the Committee.