SutraAudit
Aditya Tambi
As financial institutions in the Global South rapidly shift toward automated, AI-driven credit underwriting to advance
financial inclusion, a massive alignment gap has emerged between optimization objectives (profit maximization/risk
minimization) and ethical socio-economic priorities (fairness and non-discrimination). In India, this gap directly
challenges the Reserve Bank of India’s (RBI) "Seven Sutras" framework for responsible AI. This paper introduces
SutraAudit, a novel evaluation framework designed to quantify and audit algorithmic bias in localized AI-driven
credit scoring models. Utilizing simulated credit applicant profiles across marginalized caste groups, low-resource
linguistic demographics, and informal income backgrounds, we benchmark the behavioral vulnerabilities of
alternative scoring architectures. Our empirical findings expose a severe alignment failure in input-scrubbed
systems: the baseline models weaponize proxy features (such as UPI transactional velocity and device tier ratings)
to yield massive demographic and equal opportunity disparities of 0.390 and 0.428 respectively. By leveraging
Adaption Labs' Blueprint specification layer, we demonstrate that structural, data-layer alignment constraints can
mitigate these systemic imbalances down to 0.014 and 0.015, offering an actionable framework for continuous
compliance auditing ready for deployment under the Apart Fellowship.
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Cite this work
@misc {
title={
(HckPrj) SutraAudit
},
author={
Aditya Tambi
},
date={
},
organization={Apart Research},
note={Research submission to the research sprint hosted by Apart.},
howpublished={https://apartresearch.com}
}


