India does not have a universal risk categorisation framework under law.

The India AI Governance Guidelines recommend India-focused risk classifications keeping the unique aspects of India and sector-specific use cases in context. It also highlights the need to protect vulnerable groups (such as women and children) from risks of AI.

The RBI’s FREE-AI framework recommends that regulated financial institutions adopt a Board-approved AI policy that risk-tiers their AI use cases by materiality, complexity and degree of autonomy, with more stringent controls applied proportionately to higher-risk applications. The report provides illustrative examples across the risk spectrum, ranging from lower-risk internal uses (such as chatbots and back-office automation) to higher-risk applications (such as credit scoring and automated underwriting) where greater oversight and validation are expected. The FREE-AI framework is a forward-looking recommendation and is not binding law.