The time has therefore come for Indian payment system providers and network operators to begin moving towards quantum-proofing our payment systems, said Deputy Governor Shirish Chandra Murmu on Friday.
“Banks, payment operators, fintechs, technology providers and standard-setters will need to move together, because quantum resilience is an ecosystem capability, not an institutional one. We must innovate not only for the future, but for the risks the future creates,” said Murmu, while speaking at Global Fintech Fest.
He added that quantum readiness must become part of cyber resilience strategy rather than a separate exercise. For this reason, the RBI has constituted an expert committee on a Quantum Secure and Adaptive Financial Ecosystem to prepare infrastructure for precisely this class of risk, he said.
Murmu noted that the objective is not to make every FinTech resemble a bank but to ensure risks from critical financial functions are properly managed and regulated where necessary.
He also emphasised that as finance becomes more automated, human accountability must grow stronger, not weaker. “Responsibility rests with the regulated institution, and boards and senior management must understand the models they deploy, their limitations and the consequences of their use.”
Demonstrating data, he highlighted the rapid growth of India’s fintech sector. With more than 14,000 entities expanding at an annualised rate of around 14%, India has become the world’s third-largest fintech ecosystem, attracting over $40 billion in cumulative investment over the past decade, according to the IMF.
Highlighting the opportunities in digital lending, Murmu said it can reduce the cost of originating, assessing and servicing small loans, and partnerships can help regulated lenders reach customers previously uneconomical to serve.
When the scale increases, the nature of risk also changes. Murmu said that fraud must increasingly be treated as an ecosystem problem, requiring cooperation across all entities. He added that the central bank is accordingly developing the Digital Payments Intelligence Platform through the Reserve Bank Innovation Hub.