# Report of the Committee to develop a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) in the Financial Sector

- **Jurisdiction:** India (IN)
- **Type:** Guideline · **Status:** In force · **Binding:** no
- **Issued by:** Reserve Bank of India (RBI)
- **Proposed:** — · **Adopted:** 13 Aug 2025 · **Effective:** —
- **Obligations:** Human oversight, Incident reporting, Data governance, Regulatory sandbox, Transparency to users, Consumer rights
- **Sectors:** Finance

## Summary
RBI committee report setting 7 'sutras' and 26 recommendations under six pillars for AI use by banks, NBFCs and other regulated entities, including board-approved AI policies, AI incident reporting, disclosure to customers and an AI innovation sandbox. It is a framework report, not binding directions.

## Why it matters
It signals what RBI supervisors will expect from regulated lenders using AI; its recommendations are now being converted into RBI guidance (see draft Model Risk Management guidance, June 2026).

## Source
[Reserve Bank of India](https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=61018)
Checked against the source on 4 Oct 2026.

## Cite
Report of the Committee to develop a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) in the Financial Sector. Reserve Bank of India (RBI). Status: In force. wheresthe.ai, https://wheresthe.ai/rule/in-rbi-free-ai-framework-2025/ (verified 4 Oct 2026).

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Canonical page: https://wheresthe.ai/rule/in-rbi-free-ai-framework-2025/ · Not legal advice.