RBI Forms Q-SAFE Committee:
The Reserve Bank of India (RBI) constituted an eight-member Expert Committee for a Quantum Secure and Adaptive Financial Ecosystem (Q-SAFE) to explore the benefits, risks and challenges of quantum technology in the financial sector.
- Rationale: Quantum Technology uses principles of quantum mechanics such as superposition and entanglement, enabling solutions for complex financial problems like portfolio optimisation, risk assessment and macroeconomic modelling.
- Quantum technology may undermine existing cryptographic standards, creating security risks for banking, payments and the wider financial ecosystem.
- The committee will evaluate the financial sector’s cryptographic inventory through a Cryptography Bill of Materials (CBOM) and assess crypto agility.
- Crypto agility is the ability of a system to quickly shift from vulnerable cryptographic methods to safer alternatives without major disruption.
- It will identify critical financial systems and processes that may be vulnerable to quantum-related cyber threats.
- The panel will assess industry readiness for quantum-safe cryptography, including vendor tools, and undertake cross-country analysis of regulatory frameworks for safe quantum deployment.
- The committee will recommend a roadmap to quantum-secure India’s financial system and submit its report within six months of its first meeting.
