AI errors: RBI panel calls for 'tolerant supervision' |...

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AI errors: RBI panel calls for 'tolerant supervision'

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An RBI panel suggests regulators should be lenient towards initial AI system errors in finance, provided adequate safety measures are in place, to foster innovation. The report emphasizes a framework built on trust, accountability, and transparency. Recommendations include building better data infrastructure and developing indigenous models, with flexible rules and proportionate liability for banks.

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