RBI Releases Framework for Responsible & Ethical AI in Financial Sector (FREE-AI)
In pursuance of the announcement made in the Statement on Developmental and Regulatory Policies released with the Monetary Policy Statement on December 06, 2024, the Reserve Bank of India (RBI) set up a committee on December 26, 2024 to develop a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) in the financial sector.
After extensive deliberations with diverse stakeholders, the Committee has submitted its report, which is being placed on the RBI website. The framework aims to harness AI’s potential in finance while safeguarding against associated risks and ensuring innovation goes hand-in-hand with risk mitigation.
- Trust is the foundation
- People first
- Innovation over restraint
- Fairness and equity
- Accountability
- Understandable by design
- Safety, resilience & sustainability
What the Report Recommends
- 26 actionable recommendations aligned to six strategic pillars, providing a forward-looking roadmap for banks, NBFCs, and other regulated entities.
- Guidance to balance innovation with risk mitigation, including governance, assurance, protection, and capacity-building measures.
The Committee’s vision is a financial ecosystem where responsible AI adoption promotes inclusion, efficiency, and security—without compromising consumer protection or systemic stability.
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