RBI Establishes Committee To Regulate AI In Financial Sector
Date
12/27/2024 2:30:29 PM
(MENAFN- KNN India)
New Delhi, Dec 27 (KNN) The Reserve bank of India has taken a significant step toward regulating artificial intelligence in the financial sector by establishing an eight-member expert committee to develop a Framework for Responsible and Ethical Enablement of AI (FREE-AI).
The committee will be led by Pushpak Bhattacharyya, a professor from IIT Bombay's Department of Computer Science and Engineering.
This high-level committee has been tasked with creating a comprehensive and adaptable AI framework that will assess the current global and domestic adoption of AI in financial services.
The panel will also examine regulatory and supervisory approaches to AI implementation in the financial sector worldwide.
A key focus of the committee's mandate includes identifying potential risks associated with AI and recommending evaluation, mitigation, and monitoring frameworks.
These recommendations will establish compliance requirements for various financial institutions, including banks, non-banking financial companies, fintech firms, and payment system operators.
The diverse expertise of the committee members reflects the complexity of the task at hand. The panel includes Debjani Ghosh from the Reserve Bank Innovation Hub, IIT Madras professor Balaraman Ravindran, and Additional Secretary Abhishek Singh from the Ministry of Electronics and Information Technology.
Other members include Rahul Matthan from Trilegal, HDFC Bank's Chief Digital Experience Officer Anjani Rathor, Microsoft India's security AI research head Sree Hari Nagaralu, and Suvendu Pati, Chief General Manager of RBI's FinTech Department.
The committee has been given a six-month timeline from its first meeting to submit its report, highlighting the urgency of establishing guidelines for AI implementation in India's rapidly evolving financial sector.
The framework aims to ensure that financial institutions adopt AI technologies in a responsible and ethical manner while maintaining operational efficiency and security.
(KNN Bureau)
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