RBI forms committee to guide ethical AI in finance
The Reserve Bank of India (RBI) has formed an eight-member committee led by Professor Pushpak Bhattacharyya of IIT Bombay to establish an ethical AI framework for the financial sector. This committee will develop a governance framework to guide responsible AI adoption across all financial institutions, including banks, NBFCs, Fintechs, and payment system operators.
The committee's primary goals are to:
* Assess current AI adoption: Evaluate the current state of AI integration within the global and Indian financial services.
* Review global regulatory practices: Analyze supervisory approaches to AI in the global financial sector to inform India's regulatory framework.
* Mitigate AI risks: Identify potential risks associated with AI applications and recommend evaluation, mitigation, and compliance mechanisms.
* Develop a governance framework: Create governance guidelines for the ethical and responsible deployment of AI models.
The committee is expected to submit its report within six months of its initial meeting. The RBI's Central Office Fintech department will provide secretarial support. The committee may also invite domain experts, industry representatives, and other stakeholders to participate in its deliberations.
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