RBI Panel Suggests Roadmap for Ethical AI in Financial Sector

RBI committee outlines 26 measures for responsible AI integration in finance.

A Reserve Bank of India (RBI) committee has outlined a comprehensive roadmap to promote the responsible and ethical adoption of Artificial Intelligence (AI) in the financial sector. Formed in December last year, the committee was tasked with developing a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI).

The panel has put forward 26 key recommendations based on six core pillars — infrastructure, policy, capacity, governance, protection, and assurance. Notable proposals include the creation of a financial sector AI innovation sandbox, development of indigenous, sector-specific AI models, formulation of adaptive and enabling policies, and the introduction of an AI liability framework.

The committee also stressed the importance of building robust data infrastructure, ensuring strong data lifecycle governance, and implementing effective consumer protection and cybersecurity measures. These steps, it said, would help balance innovation with risk management and maintain trust in AI-driven financial services.

By encouraging homegrown AI solutions and embedding ethical safeguards, the RBI aims to position India’s financial sector as both technologically advanced and globally trusted, while ensuring that rapid AI adoption does not compromise security, privacy, or accountability.