RBI’s Panel on AI Ethics in Financial Sector

  • December 27, 2024
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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RBI’s Panel on AI Ethics in Financial Sector

Sub: Eco

Sec : Banking sector

The Reserve Bank of India (RBI) has constituted a committee to develop a framework for the responsible and ethical use of Artificial Intelligence (AI) in the financial sector.

Key Highlights

  • Committee Name:
    • Framework for Responsible and Ethical Enablement of AI (FREE of AI).
  • Objective:
    • Establish ethical guidelines for AI adoption in the financial industry.
    • Ensure responsible use of AI technologies in banking and finance.
  • Chairman:
    • Pushpak Bhattacharyya, Professor of Computer Science and Engineering at IIT Bombay.
  • Focus Areas:
    • Assessing Current Adoption: Evaluate the level of AI implementation in financial services.
    • Establishing Principles: Develop ethical standards to prevent misuse and ensure fairness.
  • Rationale:
    • With AI becoming integral to financial operations, concerns over data privacy, bias, and transparency are growing.
    • The framework aims to mitigate risks and promote trust in AI-driven solutions.
economy RBI's Panel on AI Ethics in Financial Sector