The Reserve Bank of India (RBI) has released its much-anticipated Free-AI Committee Report, a move with far-reaching implications for the BFSI and technology sectors. The report emphasizes the need for responsible, transparent, and indigenous AI adoption to strengthen financial inclusion, trust, and systemic resilience.
India’s financial industry is at the center of transformation with the introduction of the FREE-AI framework.
If deployed responsibly, AI can become a catalyst for financial inclusion, stronger fraud detection, and improved consumer trust.
While only 8% of global organizations have achieved full AI-driven transformation, 85% already report measurable returns.
For India, this presents an opportunity to leapfrog by embedding explainable and ethical AI models into its financial ecosystem, turning trust into a long-term advantage.
The report also notes that AI adoption is no longer optional—it is both a competitive necessity and a safeguard for the financial system.
Yet, smaller institutions face hurdles with legacy integration, data readiness, and financial capacity.
The way forward, according to the committee, lies in board-level oversight, regulatory sandboxes, and shared infrastructure that ensure scalability and safety.
By aligning innovation with resilience, India has the chance to set a global benchmark for trustworthy AI in finance.
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