**Summary:**
On August 13, 2025, the Reserve Bank of India (RBI) released the Report of the Committee to develop a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREEAI) in the Financial Sector. This initiative follows an announcement made in the Monetary Policy Statement of December 6, 2024, leading to the committee's establishment on December 26, 2024. The report, now available on the RBI website (www.rbi.org.in), proposes a framework to guide the adoption of AI in the financial sector, balancing innovation with risk management. The framework is built upon 7 Sutras (foundational principles) and includes 26 actionable recommendations organized under six strategic pillars. The report is intended to foster a financial ecosystem where AI innovation and risk mitigation are in harmony. For further information, contact the Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001, via email at helpdoc@rbi.org.in or phone at 022-2266 0502. This press release is numbered 2025-2026/902 and was issued by Chief General Manager, Puneet Pancholy.
Key Entities Referenced
Reserve Bank of India: The central bank of India, which set up the committee to develop a framework for responsible AI enablement in the financial sector.
Artificial Intelligence: The technology that the committee is focused on enabling responsibly and ethically in the financial sector (FREE AI).
Financial Sector: The specific sector targeted for the responsible and ethical enablement of AI.
Committee to develop a Framework for Responsible and Ethical Enablement of Artificial Intelligence FREEAI in the Financial Sector: The committee established by the Reserve Bank of India to create a framework for responsible AI adoption in finance.
Monetary Policy Statement: A statement released by the Reserve Bank of India, along with which the announcement to set up the AI committee was made.
7 Sutras: The foundational principles developed by the Committee for AI adoption in the financial sector.
Puneet Pancholy: Chief General Manager at Reserve Bank of India
Mumbai, Maharashtra: Location of Central Office, Department of Communication, Reserve Bank of India
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
August 13, 2025
Report of the Committee to develop a Framework for Responsible and Ethical
Enablement of Artificial Intelligence (FREE-AI) in the Financial Sector
In pursuance to the announcement made in the Statement on Developmental and
Regulatory Policies released along with the Monetary Policy Statement dated
December 06, 2024, the Reserve Bank of India had set up the committee to develop
a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-
AI) in the Financial Sector on December 26, 2024.
2. The Committee, after extensive deliberations with diverse stakeholders, has since
submitted its report and the same is being placed on the RBI website.
3. The report sets out a framework to guide the use of AI in the financial sector,
aiming to harness its potential while safeguarding against associated risks. The
Committee has developed 7 Sutras to serve as the foundational principles for AI
adoption. Guided by the 7 Sutras, the Committee has recommended a forward-
looking approach, containing 26 actionable recommendations under six strategic
pillars. The report envisions a financial ecosystem where encouraging innovation is in
harmony, and not at odds, with mitigation of risk.
(Puneet Pancholy)
Press Release: 2025-2026/902 Chief General Manager