New Delhi, July 21 -- On 24 July, the public consultation window closes on the Reserve Bank of India's (RBI) Draft Guidance on Regulatory Principles for Model Risk Management. This MRM framework follows the Indian central bank's Free-AI report, which set forth the principles of accountability, transparency, human oversight and fairness to govern artificial intelligence (AI) in India's financial sector. Financial entities now have the 'what' of their task but not the 'how.'

We noted this across our conversations with bank and fintech executives, technology providers, legal experts, regulators, auditors and policy specialists while researching AI governance.

Further, RBI's own survey of about 600 regulated entities covering 90% of the sec...