RBI committee for Framework for Responsible and Ethical Enablement (FREE) of Artificial Intelligence(AI) in the Financial Sector

As part of the Statement on Developmental and Regulatory Policies released along with the Monetary Policy Statement dated December 06, 2024, the Reserve Bank of India had announced the setting up of a committee to develop a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) in the Financial Sector.

The Terms of Reference of the Committee are as under:

1. To assess the current level of adoption of AI in financial services, globally and in India.
2. To review regulatory and supervisory approaches on AI with focus on financial sector globally.
3. To identify potential risks associated with AI, if any and recommend an evaluation, mitigation and monitoring framework and consequent compliance requirements for financial institutions, including banks, NBFCs, FinTechs, PSOs, etc.
4. To recommend a framework including governance aspects for responsible, ethical adoption of AI models / applications in the Indian financial sector.
5. Any other matter related to AI in the Indian financial sector.