The Reserve Bank of India (RBI) has formed an eight-member committee to create a framework for responsible and ethical use of artificial intelligence (AI) in the financial sector.
Led by Professor Pushpak Bhattacharyya from IIT Bombay’s Department of Computer Science and Engineering, the committee will study the current adoption of AI in financial services globally and in India. It will also examine regulatory and supervisory practices related to AI in the financial sector worldwide.
The group will identify risks linked to AI and propose methods to evaluate, reduce, and monitor these risks. It will also recommend compliance requirements for financial entities, including banks, NBFCs, FinTechs, and payment system operators.
The committee aims to draft a governance framework to support ethical AI adoption in India’s financial sector, according to the RBI.
The members include:
- Debjani Ghosh, Independent Director, Reserve Bank Innovation Hub
- Balaraman Ravindran, 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
- Suvendu Pati, CGM, FinTech Department, RBI
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The panel will submit its report within six months of its first meeting. This development follows an announcement made during the RBI’s December monetary policy meeting.
