India: Reserve Bank of India released report on Framework for Responsible and Ethical Enablement of Artificial Intelligence

On 13 August 2025, the Reserve Bank of India (RBI) released the FREE- Artificial Intelligence (AI) Committee Report, establishing a framework for responsible and ethical enablement of AI in the financial sector. The framework applies to all RBI-regulated entities, including banks, Non-Banking Financial Company and financial technology operations. The framework is built on seven foundational principles, including innovation, fairness, accountability, safety, resilience and sustainability. The framework operationalises these principles through 26 targeted recommendations across six strategic pillars, balancing innovation enablement, focusing on shared AI infrastructure, innovation sandbox, indigenous AI models, capacity building, and relaxed compliance for low-risk solutions. It also focuses on risk mitigation, including mandatory board-approved AI policies, enhanced governance, cybersecurity frameworks, AI audits, and consumer disclosure requirements.