RBI creates 8-member panel on ethical use of AI

The Reserve Bank on Thursday announced the creation of an eight-member committee to develop a framework for responsible and ethical authorization of artificial intelligence (LIBRE-AI) in the financial sector. Led by IIT Bombay Professor Pushpak Bhattacharya (Department of Computer Science and Engineering), the panel will assess the current level of adoption of AI in financial services, globally as well as in India.

It will also examine regulatory and supervisory approaches to AI, with a focus on the financial sector globally.

The panel will also identify potential risks associated with AI, if any, and recommend an assessment, mitigation and monitoring framework and resulting compliance requirements for financial institutions, including banks, NBFCs, FinTechs, OSPs, etc.

The committee will recommend a framework including governance aspects for responsible and ethical adoption of AI models/applications in the Indian financial sector, the RBI said.

Other panel members are: Debjani Ghosh (Independent Director, Reserve Bank Innovation Hub); Balaraman Ravindran (Professor and Director of Wadhwani School of Data Science and AI, IIT Madras); Abhishek Singh (Additional Secretary, Ministry of Electronics and Information Technology); Rahul Matthan (partner, Trilegal); Anjani Rathor (Group Head and Director of Digital Experience, HDFC Bank); Sree Hari Nagaralu (AI Security Research Lead, Microsoft India); and Suvendu Pati (CGM, FinTech Department, RBI).

The Committee will submit its report within six months from the date of its first meeting, the RBI said. The central bank made the announcement regarding the panel at its December monetary policy meeting.