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RBI Unveils FREE-AI Framework with 26 Recommendations to Steer Financial AI Adoption

The report requires banks to implement board-approved AI policies with consolidated guidance to be overseen by a proposed permanent committee.

Overview

  • The committee chaired by Pushpak Bhattacharyya published the FREE-AI report on August 13 with 26 recommendations across six strategic pillars.
  • It prioritises digital public infrastructure such as AI Kosh integration, an AI innovation sandbox and a fund to spur homegrown model development.
  • Regulated entities must bolster operational safeguards with AI-specific audits, cybersecurity measures, incident reporting and enhanced business continuity plans.
  • The report calls on the RBI to issue a consolidated AI guidance document and to establish a permanent multi-stakeholder standing committee for ongoing oversight.
  • Adoption is steered by seven Sutras focusing on trust, fairness, accountability, people-first innovation and resilience to align growth with consumer protection.