Mumbai: The central bank has set up an eight-member panel, headed by a professor from the Indian Institute of Technology (IIT), to study the opportunities, risks and challenges posed by quantum technology in the financial sector.Anil Prabhakar, a professor of IIT Madras, will head the Reserve Bank of India (RBI) committee on quantum computing, which Mint Road said has application in areas such as portfolio optimisation, risk assessment and macroeconomic modelling."Quantum Technology represents a paradigm shift compared with traditional systems as it leverages the principles of quantum mechanics, such as superposition and entanglement," the RBI said.However, it also warned that the technology could pose risks to existing cryptographic systems.To address these concerns, the RBI has formed an expert committee for a Quantum Secure and Adaptive Financial Ecosystem (Q-SAFE).The members include Dilip Asbe, MD and CEO, NPCI; Sunil Kumar, additional secretary, department of science and technology; Satish Rao Nagesh, DMD, State Bank of India; Suvendu Pati, CGM, fintech department, RBI; Vinayak Godse, CEO, Data Security Council of India; Manoj Kumar Jain, Scientist-G and group coordinator, ministry of electronics and information technology; and L Venkata Subramaniam, Quantum India servant leader and former IBM Quantum India head.The committee has been asked to submit its report within six months of its first meeting.According to the RBI, the panel will review the financial sector's preparedness for quantum-related risks, identify systems most vulnerable to cyber threats, study global regulatory practices and assess and recommend a roadmap and framework for the safe adoption of quantum applications in finance.