RBI’s Seven Sutra for Responsible AI in Financial Sector

RBI’s Seven Sutra for Responsible AI in Financial Sector

Committee Set up By RBI to develop a Framework for Responsible and Ethical Enablement of AI (FREE-AI) aims to promote innovation while mitigating AI risks in the financial sector. The Committee’s Recent Report contains 26 actionable recommendations under 6 strategic pillars.

  • Seven Sutras (Foundational Principles)
  1. Trust in the Foundation
  2. People First
  3. Innovation over Restraint
  4. Fairness and Equity.
  5. Accountability
  6. Understandable by Design
  7. Safety, Resilience & Sustainability

 

Key Recommendations:

  • Innovation Enablement
  • Establish shared infrastructure for AI access.
  • Create AI Innovation Sandbox.
  • Develop indigenous financial sector-specific AI models.
  • Risk Mitigation
  • Formulate board approved AI policy for regulated entities.
  • Expand product approval processes.
  • Strengthen consumer protection and audits for AI systems
  • Enhance cyber security and incident reporting frameworks.
  • Goal
  • Build a financial ecosystem where innovation and risk mitigation progress in tandem.

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