MDR fears groundless, AI accountability lies with boards: RBI Dy Governor SC Murmu (opens in a new tab)
Why readIndia's central bank has said in public that accountability for AI outcomes rests with bank boards, a line Indian financial institutions will be measured against in supervision.
Speaking at the Bengal Chamber of Commerce and Industry financial market conclave, RBI Deputy Governor S. C. Murmu placed responsibility for AI deployment outcomes squarely on the boards of regulated entities, alongside dismissing industry concern that merchant discount rate changes would slow digital payment adoption. The AI remark is the part with governance weight: it signals that model risk, vendor AI and automated decisioning will be examined as board level responsibilities rather than technology team matters. Indian BFSI risk and compliance functions should read it as advance notice of the framing supervisors will use, and check that board reporting on AI systems actually exists.