Lowdown: RBI wants banks to add sill Switches, human oversight for AI models

Download the draft guidelines here. Banks and other regulated entities (REs) may soon have to ensure every artificial intelligence (AI) system they deploy can be overridden, suspended or deactivated through “kill-switch arrangements” , under the Reserve Bank of India’s (RBI) draft Guidance on Regulatory Principles for Model Risk Management, 2026 . Released for public consultation on Wednesday , the draft proposes a broad framework governing how banks, NBFCs and other financial institutions devel