The Reserve Bank of India (RBI) on Monday announced the formation of an eight-member expert committee to study the opportunities, risks, and long-term implications of quantum technology in India’s financial sector. The initiative comes as global financial systems increasingly explore advanced computing technologies capable of transforming banking, cybersecurity, risk assessment, and digital infrastructure.

In an official statement, the RBI said quantum technology represents a major shift from traditional computing systems because it relies on principles of quantum mechanics such as superposition and entanglement. According to the central bank, these technologies could significantly improve complex financial operations, including portfolio optimisation, fraud detection, macroeconomic modelling, and advanced risk analysis.

At the same time, the RBI warned that quantum computing also poses serious cybersecurity challenges, particularly to existing cryptographic systems used by banks and financial institutions. Experts globally have raised concerns that highly advanced quantum computers could eventually break current encryption standards, potentially exposing sensitive financial and customer data to cyber threats if systems are not upgraded in time.

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To examine these issues, the RBI has constituted the Expert Committee for a Quantum Secure and Adaptive Financial Ecosystem (Q-SAFE). The panel has been tasked with evaluating the financial sector’s cryptographic preparedness through a Cryptography Bill of Materials (CBOM), identifying vulnerable systems, assessing industry readiness for quantum-safe encryption, and recommending a roadmap for securing India’s financial ecosystem against future quantum threats.

The committee will be chaired by Professor Anil Prabhakar from the Department of Electrical Engineering at IIT Madras. Other members include senior officials and experts from the Department of Science and Technology, State Bank of India, National Payments Corporation of India (NPCI), Ministry of Electronics and Information Technology, Data Security Council of India, and the quantum computing industry. RBI official Suvendu Pati has been appointed Member-Secretary of the panel.

According to the central bank, the committee will submit its report within six months from its first meeting. The move is being viewed as part of India’s broader efforts to strengthen financial sector resilience and prepare for emerging technological disruptions, especially as countries and global institutions accelerate research and investment in quantum computing and next-generation cybersecurity systems.

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