Acknowledging the transformative impact of emerging technologies like AI, tokenization, and cloud computing, the RBI will establish a committee of experts to design a Framework for Responsible and Ethical Enablement of AI (FREE-AI) in the financial sector. The framework aims to address key challenges such as algorithmic bias, data privacy, and explainability while ensuring ethical and responsible AI deployment in the sector, stated RBI Governor Shaktikanta Das.
In its ongoing battle against digital fraud, the RBI has introduced MuleHunter.AI, an advanced AI/ML-based tool developed by the Reserve Bank Innovation Hub (RBIH), Bengaluru. This model is designed to help banks identify and address mule bank accounts swiftly, significantly reducing incidents of digital fraud.
To deepen financial inclusion and improve access to formal credit, the RBI has allowed Small Finance Banks to offer pre-sanctioned credit lines through the UPI platform. Initially launched in September 2023 for Scheduled Commercial Banks, this expansion aims to support “new to credit” customers, further broadening the reach of formal credit mechanisms.
The FX-Retail platform, launched in 2019, is now proposed to be linked with the Bharat Connect platform of NPCI. This would enable users to transact on the FX-Retail platform through mobile apps of banks and non-bank payment system providers. This will expand the reach of FX-Retail platform, enhance user experience and promote fairness and transparency in pricing with adequate safeguards.
