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 submit its report within six months of its first meeting, the RBI said.
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 to AI with a focus on the financial sector globally.
As part of the terms of reference, the committee will identify potential risks associated with AI and recommend an evaluation, mitigation, and monitoring framework and consequent compliance requirements for financial institutions, including banks, non-bank finance companies (NBFCs), fintech companies, and payment system operators (PSOs).
