RBI Forms Expert Panel to Shape Ethical AI Framework in Finance

The Reserve Bank of India has set up a diverse expert committee to establish a Framework for Responsible and Ethical Enablement of AI in the financial sector. Chaired by Pushpak Bhattacharyya, the eight-member group aims to mitigate risks and promote responsible AI use, delivering a report within six months.

The Reserve Bank of India (RBI) has formed an eight-member committee to propose a Framework for Responsible and Ethical Enablement of AI (FREE-AI) within the financial sector. Announced in an official statement on Thursday, the committee is tasked with delivering its recommendations within the next six months.

As technologies such as AI, tokenisation, and cloud computing rapidly transform the financial sector, the RBI seeks to balance their benefits with associated risks, including algorithmic bias and data privacy concerns. The decision to establish the committee was hinted at during RBI's recent monetary policy meeting.

Leading the committee is Pushpak Bhattacharyya, a professor from IIT Bombay. The panel includes Debjani Ghosh from NITI Aayog, Balaraman Ravindran from IIT Madras, Abhishek Singh of the Ministry of Electronics and IT, Rahul Matthan from Trilegal, Anjani Rathor from HDFC Bank, and Sree Hari Nagaralu from Microsoft India. Suvendu Pati, from RBI's FinTech Department, will serve as the Member Secretary.

The FinTech Department at the RBI's Central Office will offer secretarial assistance, while the committee might also engage with domain experts and industry representatives for insights. Among its responsibilities, the committee will evaluate AI adoption levels, review regulatory approaches worldwide, and identify potential risks to propose a comprehensive AI governance framework for the financial sector.

(With inputs from agencies.)