RBI Urges Payment Networks and Fintechs to Build Quantum-Proof Systems Against Cryptographic Threats — September 11, 2026

The Reserve Bank of India (RBI) has urged domestic payment network operators, fintech firms, and commercial banks to begin preparing their infrastructure for quantum computing threats, warning that upcoming computational advances could undermine the cryptographic foundations that currently secure the country's financial networks.

Delivering a keynote address at the Global FinTech Fest in Mumbai, RBI Deputy Governor Shirish Chandra Murmu emphasized that the transition to quantum-safe architecture requires early coordination across all ecosystem players.

"The time has therefore come for Indian payment system providers and network operators to begin moving towards quantum-proofing our payment systems," Murmu said, adding that "quantum resilience is an ecosystem capability, not an institutional one".

Addressing Future Cryptographic Vulnerabilities

While acknowledging that full-scale quantum computing risks are not an overnight threat, Murmu warned that waiting for the technology to mature before taking action would expose financial architecture to severe disruption. Payment backbones rely on long hardware and software replacement cycles, meaning any comprehensive overhaul to post-quantum cryptography (PQC) standards could require several years of groundwork.

The central bank flagged key systemic concerns, including:

• Harvest Now, Decrypt Later (HNDL): Malicious actors can collect and store encrypted financial communications and customer transaction records today, with the objective of decrypting them once sufficiently powerful quantum processors become accessible.
• Long Transition Lead Times: Upgrading foundational public-key cryptography across core banking systems, point-of-sale terminals, and mobile applications involves extended design, validation, and rollout timelines.
• Interoperability and Ecosystem Linkages: Because payments pass between banks, third-party application providers (TPAPs), switch operators, and regulatory interfaces, security weaknesses in any single segment jeopardize the broader network.

Unprecedented Digital Transaction Scale

The push towards quantum resilience comes against the backdrop of India's rapid expansion in real-time digital payments. According to RBI data highlighted by Murmu, the Unified Payments Interface (UPI) processed approximately 24,162 crore transactions valued at around ₹314 lakh crore in FY 2025–26, representing about 85% of total digital payment volume nationwide.

Given this scale, any breach of foundational security mechanisms would carry outsized macroeconomic consequences. The Deputy Governor noted that quantum preparedness must be integrated directly into institutions' core cyber-resilience blueprints rather than addressed as a peripheral IT project.

Murmu also referenced global experimentation such as Project Leap, an initiative by the Bank for International Settlements (BIS) Innovation Hub and partner central banks that tested replacing traditional public keys with post-quantum cryptography in cross-border liquidity transfers. The primary takeaway from the trial was that migration takes significantly longer than individual institutions anticipate and cannot succeed in silos.

Policy Roadmap and Regulatory Stance

To guide domestic financial institutions, the RBI has already established the Quantum Secure and Adaptive Financial Ecosystem (Q-SAFE) expert committee. Convened by academia and industry specialists—including representatives from IIT Madras, the National Payments Corporation of India (NPCI), and top commercial lenders—the panel is examining cryptographic inventories, vendor capabilities, and transition roadmaps.

Clarifying the central bank's broader supervisory posture, Murmu reiterated that the RBI's objective is not to compel fintechs to mirror traditional commercial banks, but rather to ensure that companies handling critical payment flows appropriately identify, contain, and mitigate systemic vulnerabilities. Strong cybersecurity and robust digital governance, he noted, will serve as essential competitive differentiators as Indian fintech players seek to scale operations internationally.

Tags: Reserve Bank of India UPI National Payments Corporation of India Digital Payments Cybersecurity Fintech