The Reserve Bank of India (RBI) has released the draft Guidance on Regulatory Principles for Model Risk Management, 2026 for public consultation, proposing a comprehensive framework to govern artificial intelligence (AI), machine learning (ML), and other analytical models used by regulated entities. As AI adoption accelerates across banking and financial services, the draft seeks to strengthen governance, accountability, and transparency while ensuring that technological innovation does not compromise financial stability or customer interests. Stakeholders may submit comments on the draft until 24 July 2026.