RBI releases draft AI rules for banks and financial companies
The Reserve Bank of India (RBI) just dropped draft rules for how banks and financial companies use AI and machine learning.
Released on June 26, 2026, these guidelines say every institution needs a board-approved risk management plan that puts humans in charge of keeping things fair and under control.
The RBI is inviting public feedback until July 24.
Banks must conduct AI bias checks
Banks will have to regularly check their AI and ML models for bias, especially in apps used by customers, and make sure they work even when things get tough.
The rules also call for human checks, independent reviews, and clear ways for people to report problems.
Plus, banks must keep detailed records of all their models, including retired ones, for at least 10 years.
It's all about making the system more transparent and consumer-friendly.