Archive · 30 May 2025
RBI to Develop Ethical AI Framework for Financial Sector
The Reserve Bank of India (RBI) is creating guidelines for how banks and financial institutions should use Artificial Intelligence (AI).
This framework will help ensure AI is used responsibly and ethically in the financial sector.
The RBI will also be working on things like standardizing regulations and improving tests to check financial stability.
They are also exploring AI solutions for their internal functions.
RBI will create a framework for ethical AI adoption in the financial sector.
The initiative is part of the agenda for the fiscal year 2025-26.
An external committee was formed in December 2024 to recommend the framework.
The RBI is also exploring AI/ML solutions for its own internal operations.
The framework will focus on data handling, consent, and security.
- Who
- Reserve Bank of India (RBI)
- What
- Preparing a framework for ethical AI adoption
- When
- During fiscal year 2025-26
- Where
- Financial sector in India
- Why
- To govern AI use in financial sector
- Framework
- Framework for ethical AI adoption
- Target Sector
- Financial sector
- Report Year
- 2024-25
- Committee Focus
- Responsible and Ethical Enablement of AI in Financial Sector
- Future Efforts
- Rationalization of regulations, AI framework, stress tests
Sources
RBI will modernise payment infrastructure security and innovation through cloud services and digital reforms
RBI’s cloud storage facility to help localise data
Reserve bank launches climate risk data platform to address financial sector risks
