RBI Forms 8-Member Committee to Establish Ethical AI Framework for Financial Sector. Banking & Finance | Dated: 29 Dec 2024 In December 2024, the Reserve Bank of India (RBI) announced the formation of an 8-member committee to create a framework for the responsible and ethical enablement of artificial intelligence (FREE-AI) in the financial sector. 🎯 Key Highlights: - The committee will be chaired by Pushpak Bhattacharya, Professor of Computer Science and Engineering at the Indian Institute of Technology Bombay (IIT-B), Mumbai, Maharashtra. - The committee is tasked with submitting its report within six months from the date of its first meeting. RBI’s FinTech Department will provide secretarial support to the committee. 💡 Other Important Facts: (i) The committee is tasked with identifying potential risks associated with artificial intelligence (AI) in the financial sector and recommending frameworks for evaluation, mitigation, monitoring, and compliance for financial institutions (FIs) such as banks, Non-Banking Financial Companies (NBFCs), and FinTechs. (ii) It will propose a comprehensive framework, including governance mechanisms, for the responsible and ethical adoption of AI models in India's financial sector. (iii) The committee members include Debjani Ghosh, an Independent Director of the Reserve Bank Innovation Hub (RBIH) and former President of NASSCOM, along with Abhishek Singh, Additional Secretary in the Ministry of Electronics and Information Technology (MeitY), Government of India (GoI). 📚 Test Your Knowledge: Who recently formed an 8-member committee to develop an ethical AI framework for the financial sector? Correct Answer: RBI 🚀 Quick Recap: About RBI Governor : Sanjay Malhotra Headquarter : Mumbai