RBI FREE-AI Compliance

Enterprise Feature

Full RBI FREE-AI Framework compliance with automated enforcement is available in AxonFlow Enterprise. This page provides an overview of RBI requirements and how AxonFlow helps you comply.

Contact Sales | View Enterprise Guide

Overview

The Reserve Bank of India (RBI) issued the Framework for Responsible and Ethical Enablement of AI (FREE-AI) in August 2025, establishing comprehensive governance requirements for AI systems used by regulated financial entities in India's banking sector.

AxonFlow provides built-in compliance features to help banks, NBFCs, and other RBI-regulated entities meet FREE-AI Framework requirements.

Regulatory Requirements

RBI FREE-AI Framework (2025)

The framework mandates:

1. AI System Registry - All AI/ML systems must be registered with board approval before production deployment
2. Risk Classification - Systems categorized as Low, Medium, or High risk based on use case
3. Model Validation - Independent validation required for high-risk systems
4. Incident Management - AI incident reporting with severity-based escalation to Board/RBI
5. Kill Switch - Emergency mechanism to immediately halt AI operations
6. Board Reporting - Quarterly and annual AI governance reports to the Board
7. Audit Trail - 7-year retention of all AI decisions for regulatory inspection
8. Human Oversight - Human-in-the-loop for high-risk decisions

Data Localization

RBI mandates that all payment data must be stored in India:

• Data residency within Indian borders
• Cross-border restrictions for sensitive financial data
• Audit accessibility for RBI inspectors

Community vs Enterprise Features

Feature	Community	Enterprise
Audit logging	✅	✅
Policy enforcement	✅	✅
PAN detection (pattern)	✅	✅
Aadhaar detection (pattern)	✅	✅
UPI ID detection	✅	✅
Basic PII redaction	✅	✅
Aadhaar Verhoeff validation		✅
AI System Registry API		✅
Model Validation tracking		✅
Incident Management		✅
Kill Switch (emergency stop)		✅
Board Reporting API		✅
7-year audit retention		✅
RBI audit export format		✅
Compliance dashboard		✅

India-Specific PII Detection

AxonFlow detects 11 India-specific PII types relevant to RBI compliance:

PII Type	Severity	Community	Enterprise
Aadhaar (12-digit)	Critical	Pattern	+ Verhoeff checksum
PAN (ABCDE1234F)	Critical	Pattern	+ Entity validation
UPI ID (user@provider)	Critical	✅	✅
Bank Account Number	Critical	✅	✅
IFSC Code	High	✅	✅
GSTIN	High	✅	✅
Voter ID (EPIC)	High	✅	✅
Driving License	High	✅	✅
Indian Passport	High	✅	✅
Indian Mobile (+91)	High	✅	✅
Pincode (6-digit)	Medium	✅	✅

Quick Start (Community)

Enable basic RBI compliance in Community edition:

# Policy configuration
policies:
  - name: rbi-pii-detection
    type: pii_detection
    config:
      enabled_types:
        - aadhaar
        - pan
        - upi_id
        - bank_account
      action: block  # or 'redact', 'log'

Enterprise Features

AI System Registry

Register and track all AI systems with board approval workflows:

# Register AI system
curl -X POST https://orchestrator:8081/api/v1/rbi/ai-systems \
  -H "Content-Type: application/json" \
  -d '{
    "system_id": "credit-scoring-v2",
    "system_name": "Credit Scoring Model",
    "risk_category": "high",
    "model_provider": "internal",
    "use_case": "credit_decisioning"
  }'

Kill Switch

Emergency mechanism to halt AI operations:

# Activate kill switch for specific system
curl -X POST https://orchestrator:8081/api/v1/rbi/killswitches \
  -H "Content-Type: application/json" \
  -d '{
    "scope": "system",
    "system_id": "credit-scoring-v2",
    "reason": "Anomalous behavior detected",
    "activated_by": "risk-officer@bank.com"
  }'

Board Reporting

Generate quarterly compliance reports:

# Generate Q4 2025 board report
curl -X POST https://orchestrator:8081/api/v1/rbi/reports \
  -H "Content-Type: application/json" \
  -d '{
    "report_type": "quarterly",
    "report_quarter": "2025-Q4"
  }'

API Reference

Enterprise RBI compliance APIs:

Endpoint	Description
GET/POST /api/v1/rbi/ai-systems	AI System Registry
GET/POST /api/v1/rbi/validations	Model Validation records
GET/POST /api/v1/rbi/incidents	Incident Management
GET/POST /api/v1/rbi/killswitches	Kill Switch control
GET/POST /api/v1/rbi/reports	Board Reports
GET/POST /api/v1/rbi/audit-exports	Audit data export
GET /api/v1/rbi/policies/templates	RBI policy templates
GET /api/v1/rbi/dashboard	Compliance dashboard

Resources

• RBI FREE-AI Framework - Official RBI guidelines
• Enterprise Implementation Guide - Detailed enterprise documentation
• Banking Industry Example - Full banking deployment example

Get Enterprise

For full RBI FREE-AI Framework compliance:

• AWS Marketplace: Deploy AxonFlow Enterprise
• Contact Sales: sales@getaxonflow.com