RBI bats for AI policy backed by boards of regulated entities

Mumbai: A Reserve Bank of India (RBI) report on the use of artificial intelligence (AI) in the financial sector has recommended that regulated entities formulate a board-approved AI policy and advised regulators to promote AI-driven innovation that supports financial inclusion, particularly for underserved and unserved populations.

In its December 2024 monetary policy statement, the RBI had announced the formation of a committee to develop a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) in the financial sector.