Latest news with #PushpakBhattacharyya
Indian Express
3 days ago
- Business
- Indian Express
India cenbank committee recommends AI framework for finance sector
A Reserve Bank of India committee has recommended a framework for developing AI capabilities for the country's financial sector, while safeguarding it against associated risks, according to a report released on Wednesday. The committee has recommended setting up a digital infrastructure to help build indigenous AI models and a multi-stakeholder standing committee to evaluate risks and opportunities. It also suggested building a fund to incentivise the development of homegrown AI models tailored for the needs of India's financial services sector. 'The report envisions a financial ecosystem where encouraging innovation is in harmony, and not at odds, with mitigation of risk,' the RBI said in a statement. The report contains 26 recommendations under six categories including infrastructure, capacity, policy, governance, protection and assurance. Other key recommendations by the eight-member committee headed by Pushpak Bhattacharyya, a computer scientist at IIT Bombay, include issuing of an enabling framework to integrate AI with existing digital public platforms such as instant payment system UPI, and designing audit frameworks. The central bank had set up the committee in December to develop a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREEAI) for the finance sector. 'The challenge with regulating AI is in striking the right balance, making sure that society stands to gain from what this technology has to offer, while mitigating its risks,' according to the report.
Economic Times
3 days ago
- Business
- Economic Times
RBI bats for AI policy backed by boards of regulated entities
Synopsis An RBI committee has recommended that financial entities adopt board-approved AI policies, promoting AI innovation for financial inclusion, especially for underserved populations. The committee outlined seven core principles, or Sutras, and 26 actionable recommendations across six strategic pillars. The RBI envisions a financial ecosystem balancing innovation and risk mitigation through responsible AI adoption. ANI RBI Mumbai: A Reserve Bank of India (RBI) report on the use of artificial intelligence (AI) in the financial sector has recommended that regulated entities formulate a board-approved AI policy and advised regulators to promote AI-driven innovation that supports financial inclusion, particularly for underserved and unserved its December 2024 monetary policy statement, the RBI had announced the formation of a committee to develop a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) in the financial sector."The Committee has developed seven Sutras to serve as foundational principles for AI adoption. Guided by these Sutras, the Committee has proposed a forward-looking approach with 26 actionable recommendations across six strategic pillars," the RBI said. "The report envisions a financial ecosystem where innovation and risk mitigation are aligned." The seven sutras outlined as core principles are: Trust is the foundation; People first; Innovation over restraint; Fairness and equity; Accountability; Understandable by design; and Safety, resilience and sustainability. The eight-member committee, chaired by Pushpak Bhattacharyya, professor at IIT Bombay, recommended that the RBI issue a consolidated AI guidance document. This would serve as a single point of reference for regulated entities and the broader fintech ecosystem on the responsible design, development and deployment of AI solutions. The committee also proposed the establishment of a permanent, multi-stakeholder AI standing committee under the RBI to provide ongoing advice on emerging opportunities and risks, and to monitor the evolution of AI address AI-related risks, the report suggested expanding product approval processes, consumer protection frameworks and audit mechanisms to include AI-specific considerations.
NDTV
3 days ago
- Business
- NDTV
RBI Panel Proposes Fund To Build Homegrown AI Framework For Finance Sector
Mumbai: A Reserve Bank of India (RBI) committee has recommended a framework for developing AI capabilities for the country's financial sector, while safeguarding it against associated risks, according to a report released on Wednesday. The committee has recommended setting up a digital infrastructure to help build indigenous AI models and a multi-stakeholder standing committee to evaluate risks and opportunities. It also suggested building a fund to incentivise the development of homegrown AI models tailored for the needs of India's financial services sector. "The report envisions a financial ecosystem where encouraging innovation is in harmony, and not at odds, with mitigation of risk," the RBI said in a statement. The report contains 26 recommendations under six categories, including infrastructure, capacity, policy, governance, protection and assurance. Other key recommendations by the eight-member committee headed by Pushpak Bhattacharyya, a computer scientist at IIT Bombay, include issuing an enabling framework to integrate AI with existing digital public platforms such as instant payment system UPI, and designing audit frameworks. The central bank had set up the committee in December to develop a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREEAI) for the finance sector. "The challenge with regulating AI is in striking the right balance, making sure that society stands to gain from what this technology has to offer, while mitigating its risks," according to the report.
Time of India
3 days ago
- Business
- Time of India
RBI bats for AI policy backed by boards of regulated entities
Mumbai: A Reserve Bank of India (RBI) report on the use of artificial intelligence (AI) in the financial sector has recommended that regulated entities formulate a board-approved AI policy and advised regulators to promote AI-driven innovation that supports financial inclusion , particularly for underserved and unserved populations. In its December 2024 monetary policy statement, the RBI had announced the formation of a committee to develop a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) in the financial sector. "The Committee has developed seven Sutras to serve as foundational principles for AI adoption. Guided by these Sutras, the Committee has proposed a forward-looking approach with 26 actionable recommendations across six strategic pillars," the RBI said. "The report envisions a financial ecosystem where innovation and risk mitigation are aligned." The seven sutras outlined as core principles are: Trust is the foundation; People first; Innovation over restraint; Fairness and equity; Accountability; Understandable by design; and Safety, resilience and sustainability. The eight-member committee, chaired by Pushpak Bhattacharyya , professor at IIT Bombay, recommended that the RBI issue a consolidated AI guidance document. This would serve as a single point of reference for regulated entities and the broader fintech ecosystem on the responsible design, development and deployment of AI solutions. The committee also proposed the establishment of a permanent, multi-stakeholder AI standing committee under the RBI to provide ongoing advice on emerging opportunities and risks, and to monitor the evolution of AI technologies. To address AI-related risks, the report suggested expanding product approval processes, consumer protection frameworks and audit mechanisms to include AI-specific considerations.
The Star
3 days ago
- Business
- The Star
India cenbank committee recommends AI framework for finance sector
MUMBAI (Reuters) -A Reserve Bank of India committee has recommended a framework for developing AI capabilities for the country's financial sector, while safeguarding it against associated risks, according to a report released on Wednesday. The committee has recommended setting up a digital infrastructure to help build indigenous AI models and a multi-stakeholder standing committee to evaluate risks and opportunities. It also suggested building a fund to incentivise the development of homegrown AI models tailored for the needs of India's financial services sector. "The report envisions a financial ecosystem where encouraging innovation is in harmony, and not at odds, with mitigation of risk," the RBI said in a statement. The report contains 26 recommendations under six categories including infrastructure, capacity, policy, governance, protection and assurance. Other key recommendations by the eight-member committee headed by Pushpak Bhattacharyya, a computer scientist at IIT Bombay, include issuing of an enabling framework to integrate AI with existing digital public platforms such as instant payment system UPI, and designing audit frameworks. The central bank had set up the committee in December to develop a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREEAI) for the finance sector. "The challenge with regulating AI is in striking the right balance, making sure that society stands to gain from what this technology has to offer, while mitigating its risks," according to the report. (Reporting by Ashwin Manikandan; Editing by Shinjini Ganguli)
