AI governance in financial institutions: ensure robust oversight, transparency, accountability and consumer protection for model deployment.
Reserve Bank outlines AI's transformative potential and attendant risks, grouping concerns into Data Bias and Robustness, Governance and Transparency. It sets ten design and operational expectations for financial institutions deploying AI: fairness, transparency, accuracy, consistency, data privacy, explainability, accountability, robustness, monitoring and updating, and human oversight. These measures aim to balance innovation with consumer protection, financial stability, cybersecurity and public trust, supported by RBI initiatives such as payments infrastructure, CBDC pilots, an Innovation Hub and a regulatory sandbox.