To develop a framework for responsible and ethical enablement of artificial intelligence (FREE-AI) in the financial sector, the Reserve Bank of India (RBI) has set up an eight-member expert committee. The committee will suggest a comprehensive and resilient framework for artificial intelligence (AI) framework for the Indian financial sector. The committee has to submit its report within six months of its constitution.

Chairman and Member of the Expert Committee

The chairman of the expert committee is Professor Pushpak Bhattacharyya of IIT Bombay.

Other Members are as follows;

Debjani Ghosh, independent director, Reserve Bank Innovation Hub, Bengaluru;
Balaraman Ravindran, Professor IIT Madras;
Abhishek Singh, additional secretary, Ministry of Electronics and Information Technology(MeitY);
Rahul Matthan, partner, Trilegal;
Anjani Rathor, HDFC Bank;
Sree Hari Nagaralu, Head of Security AI research, Microsoft India (R&D); and
Suvendu Pati, Chief General Manager, FinTech Department, RBI.

Function of the Committee

The committee will assess the current level of adoption of AI in financial services in India and abroad;

It will review regulatory and supervisory approaches to AI with a focus on the financial sector across the world;
It will identify potential risks associated with AI in financial institutions like banks, non-bank finance companies (NBFCs), fintechs, and payment system operators (PSOs).
The committee will suggest suitable compliance requirements to be followed by the financial institution to contain risks associated with the use of AI.
Recommend a suitable framework including governance aspects for responsible, ethical adoption of AI models/applications in the domestic financial sector.

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