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ARTICLE · 26 SEPTEMBER 2025

RBI's Free-AI Framework: Navigating The Legal And Regulatory Landscape

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On August 13, 2025, the Reserve Bank of India ("RBI") released the much-anticipated committee report on Framework for Responsible and Ethical Enablement of Artificial Intelligence...

IndiaTechnology
Vara Gaur
Vara Gaur
Sakina Kapadia
Sakina Kapadia
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Overview

On August 13, 2025, the Reserve Bank of India ("RBI") released the much-anticipated committee report on Framework for Responsible and Ethical Enablement of Artificial Intelligence ("FREE-AI") in the financial sector. This comprehensive framework, developed by a committee chaired by Dr. Pushpak Bhattacharyya of IIT Bombay, marks a significant milestone in India's approach to AI governance in financial services.

This article seeks to unpack the FREE-AI framework in a manner accessible to legal professionals, policymakers, industry professionals and lay readers alike. It explains the core principles and regulatory vision behind the framework, situates it within India's broader legal landscape, and evaluates its potential impact on financial institutions, regulators, and consumers. Further, it examines whether the framework adequately addresses the pressing challenges of accountability, consumer protection, and liability in AI-driven decision-making,

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