Summaries by Vidhi Sharma, Mandar Kagade

The Reserve Bank of India's draft guidance on AI risk management offers clear principles but lacks operational clarity, hindering financial entities' implementation capacity. The article highlights a significant gap between high-level requirements and practical application, with banks needing answers to "how" AI systems are owned, deployed, and governed, rather than just "what". This absence of concrete guidance impacts innovation and responsible AI adoption. The authors stress the need for practical tools, management clarity, and defined graded liability to convert broad principles into everyday organizational practice. They urge institutions to address these gaps during the consultation period for stronger future governance.