Quantum threat alert? RBI sets up expert panel to secure financial system, unveils Q-SAFE plan

The Reserve Bank of India on Monday (May 25) formed an expert committee to inspect the opportunities and risks arising from quantum technology in the financial sector. RBI's move came in order to design a roadmap to make India's financial ecosystem secure against future quantum-related cyber threats. The committee has been made under the initiative "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".

Who will chair the committee?

The Reserve Bank of India said the newly constituted panel will assess the potential benefits and risks linked to the adoption of quantum technologies in the banking and financial sectors. The committee will be chaired by Anil Prabhakar, a professor in the Department of Electrical Engineering at the Indian Institute of Technology Madras, who will act as the convener.

The panel also includes representatives from the 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, along with specialists from the quantum technology industry.

According to the RBI, the committee will review the existing cryptographic infrastructure used in the financial sector through a Cryptography Bill of Materials (CBOM) and identify systems that could face risks from future quantum computing threats. It will also study how prepared the financial industry is to transition toward quantum-safe cryptography, including the readiness and maturity of available vendor tools and cybersecurity solutions.

The central bank noted that the panel may also invite domain experts, industry representatives and other stakeholders for consultations during its deliberations. The RBI stated that the committee is likely to submit its report within six months from the date of its first meeting.