RBI has published committee report from its Committee to develop a FREE-AI in the Financial Sector. The framework is built on seven core principles, or “sutras,” which include Trust, People First, Innovation over Restraint, and Fairness. The recommendations are organized under six pillars, i.e. Infrastructure, Policy, Capacity, Governance, Protection, and Assurance. For innovation enablement, it include establishing a shared data infrastructure, creating an AI Innovation Sandbox, and developing indigenous financial sector-specific AI models. For risk mitigation, it recommends that regulated entities (REs) create board-approved AI policies, enhance cybersecurity, and ensure robust governance frameworks throughout the AI lifecycle.
(Link: RBI Committee Report, Press Release Dated 13/08/2025)