The Reserve Bank of India has proposed a framework requiring banks and other regulated entities to strengthen oversight of artificial intelligence and machine-learning models through board-approved policies, model inventories and tighter risk controls, Reuters reported Wednesday, citing RBI draft guidelines.
Under the draft guidelines, banks would need to monitor risks at both the individual model and enterprise level, validate all models independently, and ensure that third-party models are also subject to review.
The central bank said lenders should establish human oversight for AI-driven decisions and add extra cybersecurity controls for generative AI systems that interact with customers or external users.
The central bank has invited feedback on the proposal until July 24.
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