<h1>Central bank proposes responsible AI framework for finance prioritizing accountability, explainability, safety-by-design, stress testing and data governance</h1> A central bank keynote outlines a regulatory framework for responsible AI in finance, urging balance between innovation and systemic stability through principles requiring accountability, explainability, safety-by-design, ringfencing of critical infrastructure, stress-testing, red-teaming, and robust data governance. It endorses industry sandboxes, self-regulation, AI literacy, and collaborative research while warning of bias, opacity, herd risks, market disruption and job displacement. Regulator-led initiatives include deployment of AI tools for fraud detection and proposals for real-time payments risk scoring; firms are advised to adopt governance, independent audits, disclosure standards and consumer-facing explainability.