On Thursday, the Reserve Bank of India (RBI) announced the formation of an eight-member committee tasked with developing a framework for the ethical and responsible use of artificial intelligence (AI) in the financial sector.
The committee will be led by Professor Pushpak Bhattacharyya from IIT Bombay’s Department of Computer Science and Engineering. Its mandate includes evaluating the current adoption of AI in financial services both globally and within India.
The committee will also examine global regulatory and supervisory approaches to AI, with a particular focus on the financial sector.
Additionally, the panel will identify potential risks associated with AI and recommend a framework for evaluating, mitigating, and monitoring these risks. This will include compliance requirements for financial institutions such as banks, NBFCs, FinTech companies, and payment system operators (PSOs).
The committee is expected to propose a governance framework to guide the responsible and ethical adoption of AI technologies within India’s financial sector, as stated by the RBI.
Other members of the committee include:
- Debjani Ghosh (Independent Director, Reserve Bank Innovation Hub)
- Balaraman Ravindran (Professor and Head, 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 Chief Digital Experience Officer, HDFC Bank)
- Sree Hari Nagaralu (Head of Security AI Research, Microsoft India)
- Suvendu Pati (CGM, FinTech Department, RBI)
The committee is expected to submit its report within six months of its first meeting. The formation of the committee was first announced during the RBI’s December monetary policy meeting.
