The Reserve Bank of India (RBI) has constituted an eight-member committee of experts to develop a framework for responsible and ethical enablement of artificial intelligence (FREE-AI) in the financial sector.
The committee, to be headed by Pushpak Bhattacharyya, professor (Department of Computer Science and Engineering), IIT Bombay, will recommend a robust, comprehensive, and adaptable AI framework for the financial sector.
The committee will assess the current level of adoption of AI in financial services, globally and in India, and review regulatory and supervisory approaches on AI with focus on the financial sector globally.
As part of the terms of reference, the committee will 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, non-bank finance companies (NBFCs), fintechs and payment system operators (PSOs).
It will also recommend a framework including governance aspects for responsible, ethical adoption of AI models / applications in the domestic financial sector, the RBI said.
Besides Bhattacharyya, the other members of the committee are Debjani Ghosh, independent director, Reserve Bank Innovation Hub; Balaraman Ravindran, professor and head (Wadhwani School of Data Science and AI), IIT Madras; Abhishek Singh, additional secretary, Ministry of Electronics and Information Technology; Rahul Matthan, partner, Trilegal; Anjani Rathor, group head and chief digital experience officer, HDFC Bank; Sree Hari Nagaralu, head of security AI research, Microsoft India (R&D); and Suvendu Pati, CGM, FinTech Department, RBI.
The committee will submit its report within six months from the date of its first meeting, the RBI said.
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