RBI FREE-AI Framework for Responsible AI in Finance
The RBI's FREE-AI Committee submitted its report on 13 August 2025, setting out 7 Sutras (guiding principles) and 26 recommendations across six pillars - Infrastructure, Policy, Capacity, Governance, Protection and Assurance - for responsible AI adoption by banks, NBFCs and other regulated entities. These are Committee recommendations, not yet binding RBI directions, but RBI has signalled it may issue consolidated AI Guidance built on them. We help REs get ahead of the recommended board-approved AI policy, model governance, red-teaming and audit expectations now.
Overview
The RBI's FREE-AI Committee submitted its report on 13 August 2025, setting out 7 Sutras (guiding principles) and 26 recommendations across six pillars - Infrastructure, Policy, Capacity, Governance, Protection and Assurance - for responsible AI adoption by banks, NBFCs and other regulated entities. These are Committee recommendations, not yet binding RBI directions, but RBI has signalled it may issue consolidated AI Guidance built on them. We help REs get ahead of the recommended board-approved AI policy, model governance, red-teaming and audit expectations now.
Who Needs to Comply?
Banks, NBFCs, AIFIs and other RBI-regulated entities deploying or evaluating AI/ML systems - and their AI/technology vendors.
Key Requirements
7 Sutras, 26 recommendations
Trust, People First, Innovation over Restraint, Fairness and Equity, Accountability, Understandable by Design, and Safety/Resilience/Sustainability, operationalised under six pillars.
Not yet binding - but a clear signal
A Committee recommendation (13 Aug 2025), not an RBI Master Direction. Recommendation 6 proposes RBI issue consolidated AI Guidance built on these Sutras - expect it to firm up.
What REs should build now
A board-approved AI policy, AI model inventory, risk-based red-teaming and audit framework, and AI incident reporting - the recommendations with the clearest audit trail.
How we help you comply
Cyber Governance & Audit
Compliance Advisory
Gap analysis and audit-readiness for RBI, SEBI, ISO 27001, SOC 2, CERT-In and DPDP.
Offensive Security & VAPT
Our specializationAI/LLM Security Testing for Indian Enterprises & Regulated Entities
AI/LLM security testing for Indian banks, SEBI-regulated entities and government bodies deploying AI chatbots and copilots - mapped to OWASP LLM Top 10 / MITRE ATLAS.
Cyber Governance & Audit
AI governanceISO/IEC 42001 (AI Management System) Audit
ISO 42001 AIMS gap analysis, build-out and certification-audit readiness, run by our ISO 42001-qualified auditors.
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