RBI sets up expert committee to prepare Indian financial system for quantum technology risks

Mumbai (Maharashtra) [India], May 25 (ANI): The Reserve Bank of India on Monday has constituted an expert committee to examine the opportunities and risks arising from quantum technology in the financial sector and to prepare a roadmap for making India's financial ecosystem secure against future quantum-related cyber threats.
The committee has been formed under the initiative called Quantum Secure and Adaptive Financial Ecosystem (Q-SAFE).
RBI said "Quantum Technology represents a paradigm shift compared with traditional systems as it leverages the principles of quantum mechanics, such as superposition and entanglement. This enables quantum systems to address complex financial problems such as portfolio optimisation, risk assessment, macroeconomic modelling, etc. However, quantum technologies can also introduce significant risks, particularly the potential to undermine certain existing cryptographic standards"
The RBI said the newly formed committee will examine both the opportunities and challenges associated with the use of quantum technologies in banking and finance.
The committee will be headed by Anil Prabhakar, Professor in the Department of Electrical Engineering at Indian Institute of Technology Madras, who will serve as Convener.
Other members include officials from the Department of Science and Technology, State Bank of India, National Payments Corporation of India, the Ministry of Electronics and Information Technology, Data Security Council of India and experts from the quantum technology sector.
The RBI stated that the committee will evaluate the financial sector's current cryptographic systems through a Cryptography Bill of Materials (CBOM) and identify critical systems that may be vulnerable to future quantum threats.
The committee will also assess the preparedness of the financial industry for adopting quantum-safe cryptography, including the availability and maturity of vendor tools and security solutions.
According to the RBI, the panel will undertake a cross-country analysis to study global developments and assess whether existing regulatory frameworks are sufficient for the safe deployment of quantum applications in the financial sector.
The committee has also been tasked with recommending a roadmap and framework for making India's financial system quantum-secure.
The central bank added that the panel may also invite domain experts, industry representatives and other stakeholders for consultations during its deliberations.
The RBI said the committee is expected to submit its report within six months from the date of its first meeting. (ANI)