Rapid Fire
RBI Sets Up Committee for Ethical AI in Finance
- 30 Dec 2024
- 1 min read
- Recently, RBI has established an eight-member committee to develop a Framework for Responsible and Ethical AI (FREE-AI) adoption in the financial sector.
- The committee is chaired by Professor Pushpak Bhattacharyya from IIT Bombay and consists of specialists from academia, government, and industry.
- Objectives of the committee include:
- Assessing the current global and Indian adoption of AI in financial services.
- Reviewing regulatory and supervisory approaches to AI in the financial sector worldwide.
- Identifying potential risks of AI in finance, recommending evaluation, mitigation, and monitoring frameworks.
- The committee will recommend a governance framework for the ethical adoption of AI in financial institutions such as banks, Non-Banking Finance Companies (NBFCs), and FinTechs.
- The initiative aligns with the RBI's focus on incorporating AI responsibly within India's financial ecosystem.
- The FinTech Department at the Central Office of the Reserve Bank of India will offer secretarial assistance to the Committee.
Read More: RBI’s Five Strategic Priorities for India's Financial Future
