C-DAC and Bank of India Sign an MoU to Build Quantum-Safe Tools for Indian Banking

Quantum computers capable of breaking today's encryption may still be years away, but banks have to plan for them now. Records encrypted today can be stolen and stored, then decrypted once powerful enough machines exist, a risk often called "harvest now, decrypt later". That is part of the backdrop to a new agreement between the Centre for Development of Advanced Computing (C-DAC) and public-sector lender Bank of India.

The two signed a memorandum of understanding on 22 October 2026 to develop indigenous quantum technologies and other advanced digital tools for banking. The Ministry of Electronics and Information Technology (MeitY), under which C-DAC operates, announced the pact on 23 October.

What the MoU covers

According to MeitY's announcement, reported by ANI, PSU Watch, Retail Banker International and others, the agreement sets up a framework for joint research, pilot projects, technology demonstrations and capacity-building. Its centrepiece is a Quantum Ecosystem for Financial Innovation, intended to prepare the bank for both the opportunities and the security risks that quantum technology brings.

The quantum work has two strands:

• Quantum-safe tools for cybersecurity and resilience, the defensive side, which protects banking systems against future quantum attacks.
• Quantum-inspired tools, which use algorithms derived from quantum computing that can run on classical hardware, for problems such as optimisation.

The partners plan to identify priority banking applications and test proofs of concept in secure environments before any wider rollout.

The MoU also reaches beyond quantum. It covers AI and blockchain applications including intelligent document processing, fraud analysis, credit analytics, secure AI platforms, smart contracts, digital identity and secure data sharing. A training component will build skills among bank staff in quantum computing, quantum security, AI and blockchain.

The agreement was exchanged by Aditya Kumar Sinha, Executive Director of C-DAC Mumbai, and Satyendra Singh, Chief Information Officer of Bank of India, in the presence of MeitY Secretary S. Krishnan. No budget or timeline was disclosed.

Why banks are moving now

Indian banking runs on digital rails, from UPI payments to core banking and online lending. Almost all of it relies on public-key cryptography that a large, fault-tolerant quantum computer could in principle break. Migrating a bank's systems to post-quantum cryptography takes years: every application, device and partner connection has to be inventoried and upgraded.

Regulators have started to focus on the issue. On 25 May, the Reserve Bank of India set up an eight-member expert committee, Q-SAFE, to study the risks and opportunities that quantum technology presents to the financial sector. The C-DAC–Bank of India pact is one of the first public examples of an Indian bank formally partnering with a government technology body to prepare.

C-DAC's growing quantum role

C-DAC, best known for India's PARAM supercomputers, has been expanding into quantum technologies. In September 2025 it signed an MoU with US-based Rigetti Computing to explore co-developing hybrid quantum computing systems, and it has a letter of intent with Dutch hardware maker QuantWare covering hybrid quantum computing, cryogenic electronics and an indigenous quantum software stack.

Applying that expertise in a large public-sector bank gives C-DAC a real-world testbed. Banking is one of the most demanding environments for security technology, with strict uptime, compliance and audit requirements.

What it means for India

The National Quantum Mission has invested heavily in building quantum computers, communication links and sensors. Agreements like this one test whether that research can be turned into tools that critical sectors actually use. If the pilots succeed, the approach could be extended to other public-sector banks and financial institutions, and could create demand for Indian quantum-security start-ups and the specialists they need.

The real test will be in the details still to come: which applications are chosen, how quickly pilots run and whether the work feeds into a bank-wide migration plan.

Sources

• https://www.aninews.in/news/business/c-dac-bank-of-india-join-hands-to-develop-indigenous-quantum-technologies-for-banking20261023175217/
• https://www.retailbankerinternational.com/news/bank-of-india-c-dac-banking/
• https://apacnewsnetwork.com/2026/10/c-dac-bank-of-india-join-hands-to-advance-quantum-technology-in-banking/
• https://psuwatch.com/newsupdates/c-dac-bank-of-india-partner-to-develop-indigenous-quantum-technologies-for-banking
• https://hellobanker.in/c-dac-and-bank-of-india-sign-mou-to-develop-indigenous-quantum-technologies-for-banking-and-cybersecurity/
• https://www.rigetti.com/news/rigetti-and-indias-centre-for-development-of-advanced-computing-announce-mou-to-explore-co-development-of-hybrid-quantum-computing-systems