RBI sets up panel to examine potential of quantum technology in financial sector

The Reserve Bank of India has set up an eight-member expert committee to explore the potential benefits and risks of quantum technology in the financial sector.

The Reserve Bank on Monday announced the setting up of an eight-member expert committee to explore and evaluate the potential benefits, risks and challenges of quantum technology in the financial sector.

Quantum technology represents a paradigm shift compared to 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, and macroeconomic modelling, the Reserve Bank of India (RBI) said.

However, quantum technologies can also introduce significant risks, particularly the potential to undermine certain existing cryptographic standards, it added.

To examine the related issues, RBI said it has decided to constitute an Expert Committee for a Quantum Secure and Adaptive Financial Ecosystem (Q-SAFE).

The committee has been asked to evaluate the financial sector's cryptographic inventory through a Cryptography Bill of Materials (CBOM), assess crypto agility and identify the critical systems and processes most vulnerable to such threats.

It will also evaluate industry preparedness for quantum-safe cryptography adoption, including the availability, scalability, and maturity of vendor tools and solutions, and recommend a roadmap and framework to quantum-secure the Indian financial system.

Anil Prabhakar, Professor, Department of Electrical Engineering, IIT Madras, has been appointed as convener of the committee.

The members include: Sunil Kumar (Additional Secretary, Department of Science and Technology), Satish Rao Nagesh (Deputy Managing Director, SBI), Dilip Asbe (MD and CEO, NPCI), Manoj Kumar Jain (Scientist-G and Group Coordinator, MeitY), Vinayak Godse (CEO, DSCI), and  L Venkata Subramaniam ( Quantum India Servant Leader, ex-IBM Quantum India Head).

Suvendu Pati, CGM, FinTech Department, RBI, has been appointed as Member-Secretary of the panel.

The committee will submit its report within six months from the date of its first meeting, the central bank said.