Kathmandu. Nepal Rastra Bank (NRB) plans to introduce 'Artificial Intelligence Guidelines' (AI Guidance).
The central bank has drafted and published AI guidance. The main objective of this guidance is to further streamline the regulation of banks and financial institutions licensed by Rastra Bank.
Main purpose of instruction
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- We ensure that LI's AI applications are transparent, interpretable, fair, accountable, support customer rights, protect data privacy, and do not produce discriminatory or inaccurate results.
Deploy AI technology in ways that improve efficiency, innovation, and customer experience while ensuring financial stability, integrity, and operational flexibility. TAG_OPEN_li_23
Mitigating AI-related risks, including operational, ethical, system, model, and cyber risks, and ensuring banks and financial institutions have appropriate governance structures in place to manage these risks. TAG_OPEN_li_21
Leverage AI to promote a competitive and inclusive financial sector that provides accessible and affordable financial services to all segments of the population. TAG_OPEN_li_20
These guidelines are applicable to banks and financial institutions licensed by Rastra Bank. The guidelines apply to commercial banks, development banks, finance companies, microfinance institutions, Nepal Infrastructure Bank, payment system operators (PSOs) and payment service providers (PSPs).
These guidelines cover the use of AI in a variety of applications including, but not limited to, credit scoring, fraud detection, customer service, risk management, and compliance monitoring.
The central bank invited suggestions from stakeholders on the draft guidelines. Until December 29, 2020. Feedback can be sent to Lou.
AI guidelines
