RBI Launches Q-SAFE Panel To Strengthen Quantum Security In Financial Sector

New Delhi, May 26 (KNN) The Reserve Bank of India (RBI) has constituted an expert committee to examine the opportunities and risks arising from quantum technologies and recommend a roadmap for building a quantum-secure financial ecosystem in India.
 
Quantum technology is increasingly being seen as a transformative innovation capable of solving complex problems by harnessing quantum mechanical principles such as superposition and entanglement. 
 
These capabilities could significantly improve applications in portfolio optimisation, risk assessment, macroeconomic modelling and other financial services functions.
 
At the same time, the technology presents potential cybersecurity risks, particularly its ability to undermine existing cryptographic standards that form the foundation of modern financial systems.
 
RBI Forms Q-SAFE Panel To Assess Quantum Opportunities
 
To address these emerging issues, the central bank has set up the Expert Committee for a Quantum Secure and Adaptive Financial Ecosystem (Q-SAFE), bringing together representatives from academia, government, financial institutions and technology organisations.
 
The committee includes members from Indian Institute of Technology Madras, Department of Science and Technology, State Bank of India, National Payments Corporation of India, Ministry of Electronics and Information Technology, Data Security Council of India, Quantum India, and the FinTech Department of the RBI.
 
The RBI's FinTech Department will provide secretarial support to the committee. The panel may also invite domain experts, industry representatives, RBI departments and other stakeholders to participate in consultations and deliberations as required.
 
Cryptographic Readiness And Regulatory Frameworks
 
Under its terms of reference, the committee will explore and evaluate the potential benefits, risks and implementation challenges of quantum technologies in the financial sector.
 
It will also assess the sector's cryptographic preparedness through a Cryptography Bill of Materials (CBOM), evaluate crypto agility, and identify critical systems and processes most vulnerable to quantum-related threats.
 
In addition, the committee will undertake a cross-country study to examine international approaches and assess whether existing regulatory frameworks are adequate for the safe deployment of quantum applications in finance.
 
The panel will review industry readiness for adopting quantum-safe cryptography, including the availability, scalability and maturity of vendor solutions and technological tools.
 
Roadmap For Quantum-Safe Finance
 
Based on its findings, the committee will recommend a comprehensive roadmap and framework for securing India's financial system against future quantum computing risks.
 
The RBI said the committee will also examine any other issues incidental to its objective of creating a quantum-secure and adaptive financial ecosystem.
 
The expert panel has been tasked with submitting its report within six months from the date of its first meeting.
 
(KNN Bureau)