Govt rolls out 12 new standards across AI, payments security, audit data and industrial systems – Crypto News

The notification aligns India’s technical norms with the latest global International Standards Organization (ISO) and International Electrotechnical Commission (IEC) frameworks as regulatory agencies step up efforts to modernise digital and industrial infrastructure.

Mint reported on 28 August 2024 that the BIS was preparing a comprehensive set of standards for AI-related applications in India. The new standards also drew significant attention, as the Department for Promotion of Industry and Internal Trade (DPIIT) released a policy paper on Tuesday recommending a mandatory blanket licensing framework for AI developers.

The most significant standards have been introduced into the artificial intelligence domain, where BIS has established four new AI data-quality standards in line with global practices. These standards define how data used in analytics and machine-learning systems should be classified, measured, managed and audited.

As AI models become increasingly embedded in banking, insurance, logistics, and government systems, regulators have been flagging the lack of uniform data governance norms. These standards aim to create a common language for data quality, helping organisations reduce model errors, mitigate bias and improve system accountability.

The beneficiaries will include banks, fintech companies, digital public infrastructure projects and platforms using AI-driven recommendations.

“BIS’s AI data-quality standards define how organisations classify datasets, measure quality, manage lifecycle controls, and maintain audit trails in ML (machine language) workflows,” said Dr Srinivas Padmanabhuni, chief technology officer of AIEnsured, a testing suite for AI products.

“Compliance requires quantitative checks for accuracy, completeness, timeliness, and bias, supported by governance policies and full provenance records. Adoption is voluntary but highly relevant for regulated sectors such as healthcare, finance, insurance, and government,” Padmanabhuni said.

Payment security

BIS has also introduced a new standard for secure cryptographic devices used in retail financial services, aligned with international standards. These devices support ATMs, POS terminals and authentication hardware that secure India’s rapidly expanding digital payments ecosystem.

According to the notification, the updated standard replaces the 2019 version but will remain in effect concurrently until May 2026, providing payment companies, banks, and device manufacturers with a transition window to upgrade to stronger global security standards.

This comes at a time when India’s retail digital payments continue to grow, and the requirements for fraud prevention are also increasing.

In addition, BIS has introduced two new standards for audit data collection—one for customs and indirect taxes, and another for government-regulated financial reporting and payroll systems, as per the government notification.

These standards provide structured formats for machine-readable audit trails, a shift that aligns with the government’s ongoing digitalisation drive across goods and services tax (GST), customs and compliance reporting. Beneficiaries include enterprises required to submit transaction data to regulators, as well as authorities who are increasingly relying on automated systems for assessment and risk detection.

A new standard for campus facilities and accommodation services in educational organisations has also been notified, outlining requirements for physical infrastructure, services, and student facilities. This comes as education regulators focus on quality assurance under the National Education Policy, and is expected to guide universities, schools, and private education providers in upgrading hostels, campus design, and learner-support systems.

Industrial upgrades

Four industrial standards have also been introduced. One covers lifts used for transporting persons and goods, specifying control devices, signals and other fittings—an area of recurring safety concerns in buildings and industrial facilities.

Another is an update of specifications for rotating electrical machines, covering high-voltage AC motors widely used in manufacturing and heavy engineering.

A third revision updates the method for measuring the length of optical fibres, replacing a 2001 standard that will be withdrawn in May 2026; this will have direct implications for telecom operators and broadband equipment suppliers.

The final standard in this block relates to reliability growth and stress testing for complex systems, used in sectors ranging from defence to high-tech manufacturing.

Another standard notified by the government relates to audit-data extensions for customs and indirect taxes, expanding the framework for machine-readable transactional data essential for automated compliance checks.

According to a consumer affairs ministry official, under which BIS falls, the move to issue a large cluster of standards at once reflects the government’s strategy to accelerate India’s alignment with global norms as it expands its digital public infrastructure and adopts emerging technologies.

“By formalizing standards on how AI datasets should be structured, measured, and audited, the government has addressed a critical gap in India’s rapidly expanding AI ecosystem,” said Ankit Aggarwal, founder, Unstop, a talent engagement and hiring platform. This move will elevate industry-wide data governance and bring Indian innovation closer to global benchmarks, he added.

Quick integration

Mint reported on 3 December that India has begun one of its most sweeping standards overhauls in recent years, withdrawing 22 quality control orders (QCOs) over the past month while simultaneously issuing a fresh set of upgraded standards across telecom networks, fibre optics, lifts, domestic gas stoves and cybersecurity.

Fifteen QCOs were withdrawn in mid-November, and another seven on 1 December, many of which covered petrochemical intermediates critical for downstream industries, including plastics and polymers as well as textiles and apparel.

India has many cases where voluntary BIS standards were converted into mandatory Quality Control Orders. For example, the BIS safety standards for toys became compulsory through a QCO in 2020, and the standard for two-wheeler helmets was made mandatory in 2018. Standards for electrical appliances and pressure cookers were converted into QCOs in 2020, while footwear standards were notified as mandatory in 2022. Many chemical and petrochemical standards have also been brought under QCOs since 2021.

Manufacturers and importers are required to obtain a Bureau of Indian Standards (BIS) licence and use the BIS mark before selling the products in India.