The RBI committee to develop a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) in the financial sector will identify potential risks associated with AI, if any, and recommend a framework assessment, mitigation and monitoring and the resulting compliance requirements for finance. establishments.
Financial institutions include banks, non-bank financial companies, payment system operators, etc.
As per the terms of reference, the eight-member committee constituted by the RBI will recommend a framework including governance aspects for responsible and ethical adoption of AI models/applications in the Indian financial sector.
Assessing AI Adoption
The committee, led by Pushpak Bhattacharyya, professor in the Department of Computer Science and Engineering at IIT Bombay, will assess the current level of adoption of AI in financial services, globally and in India. It will also examine regulatory and supervisory approaches to AI, with a focus on the financial sector globally.
The committee will submit its report within six months from the date of its first meeting.
Besides Bhattacharyya, the other members of the committee are Debjani Ghosh, Distinguished Fellow, NITI Aayog; Independent Director, Reserve Bank Innovation Hub; Balaraman Ravindran, Professor and Director, Wadhwani School of Data Science and AI, IIT Madras; Abhishek Singh, Additional Secretary, Ministry of Electronics and Information Technology, Government of India; Rahul Matthan, Partner, Trilegal; Anjani Rathor, Group Head and Chief Digital Experience Officer, HDFC Bank. ; Sree Hari Nagaralu, Head of AI Security Research, Microsoft India (R&D) and Suvendu Pati, CGM, FinTech Department, Reserve Bank of India (Member-Secretary).