C-DAC and Bank of India Sign MoU to Develop Indigenous Quantum Technologies for Banking and Cybersecurity

The Centre for Development of Advanced Computing (C-DAC) and Bank of India (BOI) have signed a Memorandum of Understanding (MoU) to explore indigenous quantum technologies and advanced digital solutions for the banking sector. The partnership aims to strengthen cybersecurity, promote financial innovation and prepare banks for future technological developments.

The MoU was signed on October 22, 2026, and provides a framework for joint research and development, pilot projects, technology demonstrations and training programmes. According to the Ministry of Electronics and Information Technology (MeitY), the collaboration will focus on technologies that can improve the security and efficiency of banking and financial services.

One of the key objectives of the partnership is to develop a Quantum Ecosystem for Financial Innovation. The initiative will help prepare banking systems for the opportunities and security challenges associated with quantum technologies. Both organisations will explore quantum-inspired and quantum-safe solutions to improve security, strengthen banking systems and support reliable financial decision-making.

What is a Quantum Ecosystem for Financial Innovation?

It means developing and testing advanced technologies to make banking more secure, efficient and ready for future cyber threats. The main areas of work include:

• Better cybersecurity: Exploring security methods that can protect banking data against future threats from quantum computers.
• Safe financial transactions: Studying technologies that could help banks communicate and exchange sensitive information securely.
• Fraud detection: Exploring artificial intelligence (AI) and advanced computing to analyse transactions and identify suspicious activities.
• Better banking decisions: Studying how new computing technologies could help with complex financial calculations and analysis.
• Indian technology development: Using India’s own research and technical expertise to develop solutions for the banking sector.

What will C-DAC and Bank of India do?

The two organisations plan to identify banking problems that these technologies could help solve. They will develop small experimental projects, test the technologies in secure environments, compare them with existing systems and assess their practical benefits. They will also prepare plans for possible future trials and adoption.

The partnership will also explore AI, blockchain, smart contracts, digital identity and secure data sharing. Training programmes in quantum computing, quantum security and other emerging technologies are also planned.

In short, the Quantum Ecosystem for Financial Innovation is an effort to prepare Indian banking for the next generation of computing and security technologies, with a focus on protecting financial information and improving banking operations.