In a significant move to shape the future of Artificial Intelligence (AI) in India&rsquo;s financial ecosystem, a committee appointed by the Reserve Bank of India (RBI) has unveiled a comprehensive framework aimed at ensuring the responsible and ethical use of AI across the sector.
Formed in December last year, the committee has put forward 26 recommendations, structured around six key pillars, infrastructure, policy, capacity, governance, protection, and assurance.
Central to its proposal is the creation of a high-quality financial sector data infrastructure, envisioned as a form of digital public utility. This platform would support the development of transparent and reliable AI models, and could be linked to the AI Kosh, which is India&rsquo;s national datasets platform under the IndiaAI Mission.
The roadmap also calls for setting up an AI innovation sandbox, encouraging the creation of indigenous AI models tailored for financial services, introducing flexible policies that adapt to evolving technologies, and putting in place an AI liability framework.
To safeguard fairness and accountability, the panel has recommended that regulated entities adopt a risk-based AI audit framework. This would involve board-approved risk categorisation and oversight across the entire AI lifecycle,&nbsp; from data inputs and algorithms to decision outputs.
If adopted, the recommendations could set a benchmark for balancing innovation with accountability, ensuring AI benefits are harnessed without compromising security, consumer protection, or ethical standards.

RBI outlines 26 key steps for safe, ethical and innovative AI adoption in banking

RBI Panel Charts Roadmap for Ethical AI in Finance

RBI outlines 26 key steps for safe, ethical and innovative AI adoption in banking

August 14, 2025 | 22:47 IST