RBI middle path on AI regulation favours consultation over rigid rules for banks

The Reserve Bank of India (RBI) will follow a consultative approach to artificial intelligence (AI) regulation, choosing to work closely with stakeholders rather than impose rigid rules.

RBI governor Sanjay Malhotra said on Tuesday that the central bank would learn alongside the industry and adopt “proportional, consultative, evidence-based and agile” regulation and supervision.

“We are committed to engage with the industry as this technology and its risks evolve through a willingness to learn alongside you, rather than regulate from a distance,” Malhotra said at a joint banking conference organised by the Federation of Indian Chambers of Commerce and Industry (Ficci) and the Indian Banks’ Association (IBA).