The Reserve Bank of India (RBI) has established a high-level expert panel, known as the Committee on FREE-AI, aimed at developing a framework for the responsible and ethical use of artificial intelligence (AI) within the financial sector. This initiative was unveiled as part of the monetary policy statement on 6 December, highlighting the RBI's focus on integrating AI into financial services while ensuring that ethical standards are upheld.
Chaired by Professor Pushpak Bhattacharyya from the Indian Institute of Technology (IIT) Bombay, the committee comprises a diverse group of experts hailing from academia, industry, and government. Among the notable members are Ms. Debjani Ghosh, Distinguished Fellow at NITI Aayog and former President of NASSCOM; Dr. Balaraman Ravindran, Head of the Wadhwani School of Data Science and AI at IIT Madras; and Shri Abhishek Singh, Additional Secretary in the Ministry of Electronics and Information Technology. The panel also includes Shri Rahul Matthan, a partner at Trilegal; Shri Anjani Rathor, Chief Digital Experience Officer at HDFC Bank; and Shri Sree Hari Nagaralu, Head of Security AI Research at Microsoft India. The member secretary role is held by Shri Suvendu Pati, Chief General Manager in the RBI's fintech department.
The primary objectives of the committee are multifaceted. Firstly, it aims to assess the current landscape of AI usage in financial services both internationally and within India. This assessment will serve as a foundational step in reviewing existing regulatory and supervisory practices specific to AI in the financial sector. Equally critical is the committee’s commitment to identifying potential risks associated with the integration of AI technologies, alongside proposing frameworks for risk evaluation and mitigation.
Furthermore, the committee will ultimately recommend a comprehensive governance framework tailored to ensure the ethical application of AI models within the Indian financial sector. These recommendations are expected to cover governance aspects and compliance requirements impacting various financial institutions, including banks, non-banking financial companies (NBFCs), fintech firms, and payment system operators (PSOs).
The panel is mandated to complete its report within six months following its inaugural meeting. The establishment of this committee reflects the RBI's proactive stance in navigating the complexities and potentials of AI technology in finance, thereby setting the groundwork for its responsible and ethical deployment across the sector.
Source: Noah Wire Services