The Reserve Bank of India (RBI) proposes guidelines that require banks to manage risks associated with artificial intelligence (AI) and machine-learning (ML) systems. Under the proposals, banks must establish a board-approved risk management framework covering all AI and ML models used in their operations. The framework is intended to ensure that AI-related risks are identified, assessed, and controlled in a structured way, rather than handled on an ad hoc basis. The RBI’s proposals also indicate that oversight should extend across the full lifecycle of AI and ML models, aligning governance with broader risk management practices. The guidelines are directed at ensuring accountability within banks by placing responsibility at the board level. Overall, the RBI is moving to set out expectations for how banks should handle AI and ML capabilities, including governance and risk controls, as these technologies become more embedded in banking products and processes.