RBI Committee Unveils Framework for Responsible and Ethical AI in Financial Sector

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  • Last Updated on 18 August, 2025

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Responsible AI in Finance

PR No. 2025-2026/902; Dated: 13.08.2025

RBI Committee Report on Responsible AI in Finance

The Reserve Bank of India (RBI) Committee has submitted its report on the framework for responsible and ethical enablement of Artificial Intelligence (AI) in the financial sector. The report emphasizes the importance of building trust, accountability, and transparency in the use of AI by financial institutions.

Seven Sutras for AI Adoption

At the core of the framework are seven guiding principles, termed as ‘Sutras’, which aim to serve as the foundation for responsible AI adoption. These Sutras provide a structured approach to ensuring that AI technologies are deployed in a manner that safeguards fairness, inclusivity, and ethical standards.

Actionable Recommendations

Building on these principles, the Committee has outlined a forward-looking roadmap with 26 actionable recommendations. These recommendations address governance, risk management, technological innovation, and regulatory alignment to promote safe AI adoption within the financial ecosystem.

Six Strategic Pillars

The recommendations are grouped under six strategic pillars that provide a holistic framework for implementation. Together, these pillars and recommendations seek to balance innovation with responsibility, ensuring that the financial sector harnesses the benefits of AI while mitigating potential risks.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied