RBI considers unified AI guidelines emphasizing human oversight and kill-switches
The Reserve Bank of India (RBI) is considering new, all-in-one guidelines for using artificial intelligence (AI) in banks and nonbanking financial companies (NBFCs).
This comes after the RBI noticed that current rules just aren't enough as AI tools become a bigger part of how money moves and decisions are made.
Its June 2026 draft pointed out that model use comes with additional risks and should establish robust human oversight for AI models and override suspension or deactivation mechanisms, including kill-switch arrangements.
RBI to tighten data and cybersecurity
The proposed guidelines under discussion will focus on things like how data is managed, making sure humans still oversee key choices, and adding kill-switches if something goes wrong.
Cybersecurity is also a big concern, so expect tighter checks there too.
While Bajaj Finance uses AI-based cameras to identify existing customers and pitch personalized offers, Tata Capital uses AI in lending decisions and monitoring, and its portfolio-monitoring platform helped reduce credit cost.