India pushes for safe AI use in financial sector
Framework aims to balance innovation with risk in banking AI use.
India’s central bank has proposed a national framework to guide the ethical and responsible use of AI in the financial sector.
The committee, set up by the Reserve Bank of India in December 2024, has made 26 recommendations across six focus areas, including infrastructure, governance, and assurance.
It advised establishing a digital backbone to support homegrown AI models and forming a multi-stakeholder body to evaluate risks.
A dedicated fund to boost domestic AI development tailored for finance was also proposed, alongside audit guidelines and policy frameworks.
The committee recommended integrating AI into platforms such as UPI while preserving public trust and ensuring security.
Led by IIT Bombay’s Pushpak Bhattacharyya, the panel noted the need to balance innovation with risk mitigation in regulatory design.
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