C-DAC and Bank of India sign pact to test quantum-safe banking tools

The Centre for Development of Advanced Computing (C-DAC) and Bank of India have agreed to work together on preparing banks for quantum computing, both the opportunities it offers and the security risks it poses.

The memorandum of understanding was signed on Thursday and announced by the Ministry of Electronics and IT on Friday. It sets up a framework for joint research, pilot projects, technology demonstrations and training. The main project is what the two call a quantum ecosystem for financial innovation, which will look at “quantum-inspired” and “quantum-safe” technology to protect banking systems and support decision-making.

The partners will draw up a list of banking uses, build proofs of concept in secure sandbox environments, compare them with existing systems and plan the next steps toward pilots.

“This collaboration with Bank of India is an important step towards translating India’s indigenous quantum and emerging technology capabilities into practical banking solutions,” said E Magesh, Director General of C-DAC.

Rajiv Mishra, an executive director of the bank, said: “Quantum technologies have the potential to reshape several aspects of banking, from cybersecurity to complex financial decision-making.”

Beyond quantum

The agreement also covers artificial intelligence and blockchain. Possible areas include document processing, help for customers and staff, fraud analysis, credit analytics, smart contracts, digital identity and secure data sharing. Training programmes in quantum computing, quantum security and AI are part of the plan.

S Krishnan, secretary at the IT ministry, said the financial system needs to become quantum-resilient at a time of growing cybersecurity concerns. The MoU was exchanged by Aditya Kumar Sinha, executive director of C-DAC Mumbai, and Satyendra Singh, the bank’s chief information officer.