The Reserve Bank of India (RBI) has constituted an eight-member committee to develop a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) in the financial sector. The announcement was made on Thursday, with the panel being tasked to guide the adoption of AI technologies in a responsible and ethical manner.
The committee will be chaired by Pushpak Bhattacharyya who is a distinguished professor from the Department of Computer Science and Engineering at IIT Bombay. Its primary objectives include assessing the current levels of AI adoption in the financial services industry both globally and in India. In addition, the panel will review regulatory and supervisory approaches to AI in the global financial sector, aiming to ensure the responsible integration of these advanced technologies into India's financial ecosystem.
What will be the task of panel?
The panel will also identify potential risks associated with AI, if any, and recommend an evaluation, mitigation and monitoring framework and consequent compliance requirements for financial institutions, including banks, NBFCs, FinTechs, PSOs, etc. The committee will recommend a framework including governance aspects for responsible, ethical adoption of AI models/applications in the Indian financial sector, the RBI said.
Members of panel
The other members of the panel are: Debjani Ghosh (Independent Director, Reserve Bank Innovation Hub); Balaraman Ravindran (Professor and 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); and Suvendu Pati (CGM, FinTech Department, RBI).
The Committee will submit its report within six months from the date of its first meeting, the RBI said. The central bank had made the announcement regarding the panel in its December monetary policy meeting.
(With PTI inputs)
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