The Reserve Bank of India (RBI) on Thursday announced the formation of an eight-member committee to prepare a framework for responsible and ethical use of artificial intelligence (AI) in the financial sector. Pushpak Bhattacharya, professor in the department of computer science and engineering at the Indian Institute of Technology (IIT), Mumbai, will be the chairman of this committee, RBI said in the statement.
This committee will assess the current level of acceptance of AI in financial services globally and domestically. It will also review the regulatory and supervisory approach to AI globally, focusing on the financial sector. The panel will also identify potential risks associated with AI. It will recommend assessment, settlement, monitoring framework and compliance points for AI-related risks for banks, non-banking financial companies (NBFCs), financial-technology firms.
The formation of an expert committee on AI was announced after the Reserve Bank’s monetary review meeting earlier this month. In accordance with the same announcement, RBI has released the details of its members and their responsibilities.
RBI said the committee will recommend a framework of governance aspects related to responsible, ethical adoption of AI models and applications in the Indian financial sector.
The committee also includes Debjani Ghosh (Independent Director, Reserve Bank Innovation Hub), Balaraman Raveendran (Professor and Head, Wadhwani School of Data Science and AI, IIT Madras), Abhishek Singh (Additional Secretary, Ministry of Electronics and Information Technology).
Apart from these, Rahul Mathan (Partner, Trilegal), Anjani Rathore (Group Head and Chief Digital Experience Officer, HDFC Bank), Mr. Hari Nagralu (Head of Security AI Research, Microsoft India) and Suvendu Pati (Chief General Manager, Finance Technology, RBI) Has also been made its member. RBI said the committee will submit its report within six months from the date of its first meeting.
