RBI Forms Q-SAFE Committee on Quantum Technology

The Reserve Bank of India (RBI) has constituted an eight-member expert committee called the Quantum Secure and Adaptive Financial Ecosystem (Q-SAFE) to study the impact of Quantum Technology on India’s financial system and to recommend a roadmap for making it quantum-secure. The panel will submit its report within six months from its first meeting.

Need of Q-SAFE Committee on Quantum Technology

Quantum technology is based on principles of quantum mechanics such as superposition and entanglement. It is expected to significantly enhance capabilities in areas like portfolio optimisation, risk assessment, and macroeconomic modelling by solving complex computational problems more efficiently than classical systems.

Despite its potential, quantum technology poses a serious cybersecurity challenge as it can potentially break or weaken existing cryptographic standards. This raises concerns for the security of banking systems, digital payment platforms, and overall financial system stability.

Q-SAFE Committee Role 

• Assessment of Opportunities and Risks: Examine the potential benefits, risks, and challenges arising from the use of quantum technology in banking, payments, and financial services.
• Evaluation of Cryptographic Systems: Assess the financial sector’s existing cryptographic infrastructure through a Cryptography Bill of Materials (CBOM) to identify cryptographic dependencies and vulnerabilities.
• Assessment of Crypto Agility: Evaluate the ability of financial institutions to quickly transition from vulnerable cryptographic algorithms to quantum-safe alternatives without major operational disruption.
• Identification of Vulnerable Systems: Map critical financial systems, digital payment infrastructure, and processes that may be exposed to quantum-enabled cyber threats.
• Regulatory and Policy Review: Examine the adequacy of existing regulatory frameworks for the safe deployment and governance of quantum technologies in the financial sector.
• Cross-Country Analysis: Study international practices, regulatory models, and preparedness strategies adopted by other countries in quantum security.
• Industry Preparedness Assessment: Evaluate the readiness of banks and financial institutions for adopting quantum-safe cryptography, including the availability, scalability, and maturity of vendor solutions.
• Roadmap for Quantum Security: Recommend a comprehensive framework and roadmap for quantum-securing India’s financial ecosystem and strengthening long-term cybersecurity resilience

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Composition of the Committee

• The Q-SAFE Committee includes experts from academia, government, and financial institutions. It is convened by Professor Anil Prabhakar from IIT Madras.
• Other members include senior officials from the Department of Science and Technology (DST), State Bank of India (SBI), and National Payments Corporation of India (NPCI). 
• The RBI’s FinTech Department will provide secretarial support to the committee.