RBI FREE-AI Framework: Seven Sutras for Responsible AI
Why in the news
An RBI report introduced FREE-AI (Framework for Responsible and Ethical Enablement of Artificial Intelligence) in August 2025 to govern AI in finance.
Seven Sutras
- Trust is the foundation.
- People first: human judgment stays central.
- Innovation over restraint.
- Fairness and equity: no bias.
- Accountability of deployers.
- Understandable by design: interpretable, traceable.
- Safety, resilience and sustainability.
Pillars described
| Pillar | Area | Measures |
|---|---|---|
| Innovation Enablement | Infrastructure | Shared data, AI sandboxes, indigenous models |
| Innovation Enablement | Policy | Adaptive regulation, reviews, risk-based compliance |
| Innovation Enablement | Capacity | Train leaders on ethical AI |
| Risk Mitigation | Governance | Board oversight, AI inventory, approval paths |
| Risk Mitigation | Protection | Cybersecurity, red-teaming, incident reporting |
| Risk Mitigation | Assurance | Audits, disclosures, toolkits |
Exam angle
- Counts: 7 sutras, 6 pillars, 26 measures.