RBI Sets Up Q-SAFE Committee for Quantum Security in Banking System

The Reserve Bank of India (RBI) has constituted an 8-member expert committee to study the impact of quantum technology on the financial sector and suggest measures to strengthen security systems used by banks and financial institutions, as per PTI reports. 

The committee, called the Quantum Secure and Adaptive Financial Ecosystem (Q-SAFE), will review both the possible use cases and risks linked to quantum computing.  

The panel has been asked to submit its report within 6 months from its first meeting. 

Review of Existing Security Systems 

According to the RBI, developments in quantum technology could affect existing cryptographic standards that currently protect financial transactions and digital infrastructure. 

The committee will examine the financial sector’s cryptographic inventory through a Cryptography Bill of Materials (CBOM). It will also identify systems and processes that may face higher exposure to future quantum-related risks. 

The panel has additionally been asked to assess whether banks and financial entities are prepared to adopt quantum-safe cryptography tools, including the availability and scalability of such technologies. 

Areas Under Study 

The RBI said quantum systems use principles such as superposition and entanglement, allowing them to process certain complex problems differently from traditional computing systems. 

The central bank noted that quantum technology may have applications in areas such as portfolio optimisation, risk assessment, and macroeconomic modelling. At the same time, it said the technology could create challenges for cybersecurity and data protection systems used across the financial sector. 

The committee will also carry out a cross-country review of regulatory frameworks related to the use of quantum technologies in finance. 

Composition of the Panel 

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

The panel includes representatives from the Department of Science and Technology, State Bank of India, National Payments Corporation of India (NPCI), Ministry of Electronics and Information Technology, and Data Security Council of India (DSCI), along with experts from the quantum technology sector. 

Read More: Government Forgoes ₹14,000 Crore Tax Revenue After Fuel Duty Cut Amid West Asia Crisis! 

Conclusion 

The committee’s recommendations are to help the RBI assess future risks linked to quantum computing and the preparedness of the financial sector to handle changes in cybersecurity standards. 

For daily market updates and regular stock market news in Hindi, stay tuned to Angel One's share market news in Hindi. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.