RBI Charts Ethical AI Framework for Financial Sector

The Reserve Bank of India (RBI) is set to develop a comprehensive framework to ensure the responsible and ethical integration of artificial intelligence (AI) within the financial sector. The initiative, outlined in the central bank's annual report, is slated for completion during the current financial year.

This move comes as AI and machine learning (ML) technologies gain prominence globally, driven by rapid advancements in computing and data accessibility. Financial institutions both domestically and internationally have increasingly begun to adopt these technologies, highlighting the need for guidelines and regulations.

A committee formed in December 2024 is tasked with recommending these guidelines, ensuring that AI integration aligns with global best practices. The RBI's efforts also include enhancing its regulatory and supervisory frameworks and improving complaint management systems through AI innovation.

(With inputs from agencies.)