RBI Sets Up Committee for Ethical AI in Finance | 30 Dec 2024

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.