RBI forms panel to study quantum technology risks in finance sector

RBI has constituted an expert committee to assess risks and opportunities linked to quantum technology and recommend a roadmap for a quantum-secure financial ecosystem

The Reserve Bank of India (RBI) has formed an eight-member panel to study issues related to quantum technology and recommend a roadmap and framework to quantum-secure the Indian financial system.

 

Anil Prabhakar, professor, Department of Electrical Engineering, IIT Madras, will be the convenor of the panel and the FinTech Department of the RBI will provide secretarial support to the committee.

 

“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,” the RBI said while highlighting the introduction of significant risks, particularly the potential to undermine certain existing cryptographic standards.

 

 

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

 

The terms of reference of the committee include exploring and evaluating the potential benefits, risks and challenges in the financial sector, undertaking a cross-country analysis and assessing the adequacy of existing regulatory frameworks for the safe deployment of quantum applications, and evaluating industry preparedness for quantum-safe cryptography adoption, including the availability, scalability and maturity of vendor tools and solutions.

 

“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,” one of the terms of reference said.

 

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