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TaxTMI 
RBI issues draft ‘Guidance on Regulatory Principles for Model Risk Management’
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....BI issues draft ‘Guidance on Regulatory Principles for Model Risk Management’<BR>FEMA & RBI<BR>Dated:- 25-6-2026<BR><BR>Reserve Bank of India has today released the draft 'Guidance on Regulatory principles for Model Risk Management' for public comments. The draft Guidance is applicable to following regulated entities: • Commercial Banks • Small Finance Banks ....
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.... • Payments Banks • Local Area Banks • Regional Rural Banks • Urban Co-operative Banks • Rural Co-operative Banks • All India Financial Institutions • Non-Banking Financial Companies • Asset Reconstruction Companies • Credit Information Companies 2. Comm....
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....ents on the draft Guidance are invited from regulated entities, members of public and other stakeholders by July 24, 2026. The comments / feedback may be submitted through the link under the 'Connect 2 Regulate' Section available on RBI's website or alternatively be forwarded to: The Chief General Manager, Operational Risk Group Department of Regulation, Central Office Reserve Bank of ....
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....India Shahid Bhagat Singh Marg, Fort Mumbai - 400 001 Or By e-mail with the subject line 'Feedback on Guidance on Regulatory Principles for Model Risk Management' Background and Objective The Reserve Bank had issued the draft "Regulatory Principles for Management of Model Risks in Credit" on August 05, 2024, with a view to strengthen governance and risk management practices relat....
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....ing to use of models in credit, followed by report of the Committee on Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) on August 13, 2025. Considering model usage has expanded significantly and regulated entities are increasingly using models, including those employing Artificial Intelligence / Machine Learning (AI / ML), across various business and decision-m....
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....aking processes; weaknesses in their governance, oversight, risk management and controls may expose the regulated entities to financial, operational, compliance, and reputational risks. Recognising this, the Reserve Bank has today released draft 'Guidance on Regulatory Principles for Model Risk Management' which provides holistic and broad regulatory expectations for model risk management across t....
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....he model lifecycle. The Guidance is applicable to all models used by regulated entities, including third party models and models employing AI / ML. (Brij Raj) Chief General Manager =============<BR> News - Press release - PIB....