# RBI's FREE-AI framework: what it means for global AI and fintech vendors serving India

> India

If you supply AI/ML models, GenAI tools or AI-enabled services to an Indian bank, NBFC or other RBI-regulated entity, the RBI FREE-AI Committee's August 2025 report sets the direction your client's compliance program is likely to take - a board-approved AI policy, model governance and inventory, red-teaming, and AI incident reporting. It isn't a binding RBI direction yet, but Recommendation 6 proposes RBI formalise it as consolidated AI Guidance, so expect these expectations to flow into your contracts regardless.

## Who needs to comply

Global AI/ML vendors, GenAI platform providers and fintech technology suppliers to RBI-regulated banks, NBFCs and AIFIs.

## Key requirements

- **Flows to you through vendor contracts** - REs are expected to govern third-party AI risk, inventory dependencies and assess AI-specific risk before product approval - your AI tool becomes part of their audit trail.
- **Not law yet, but the direction is clear** - These are Committee recommendations (13 Aug 2025), not a binding RBI Master Direction - but RBI has signalled consolidated AI Guidance may follow.
- **How we help** - AI model documentation, red-teaming evidence and risk assessment formatted for your Indian RE client's FREE-AI-aligned vendor review.

---
Related services: https://a5cyber.com/services/compliance-advisory/, https://a5cyber.com/services/ai-llm-security/, https://a5cyber.com/services/iso-42001-audit/