UPSC Prelims Practice Questions — Panel to study quantum tech’s potential in financial sector

Q1. In the context of the RBI's Q-SAFE expert committee, the term 'Cryptography Bill of Materials (CBOM)' is best described as which one of the following?

  • A. A structured inventory of the cryptographic algorithms and assets used across financial systems, prepared to identify components vulnerable to future quantum attacks
  • B. A statutory schedule of fees payable by banks for deploying encryption hardware certified by the RBI
  • C. A ledger of quantum-key-distribution devices imported by scheduled commercial banks in a financial year
  • D. A costing document estimating the capital expenditure needed to migrate the payment system to quantum computers

Q2. With reference to the members of the RBI's Q-SAFE (Quantum Secure and Adaptive Financial Ecosystem) expert committee, consider the following member–affiliation pairings: 1. Anil Prabhakar — IIT Madras (convener) 2. Dilip Asbe — National Payments Corporation of India (NPCI) 3. Suvendu Pati — FinTech Department, RBI (Member-Secretary) 4. Vinayak Godse — State Bank of India Which of the above pairings is/are NOT correctly matched?

  1. Anil Prabhakar — IIT Madras (convener)
  2. Dilip Asbe — National Payments Corporation of India (NPCI)
  3. Suvendu Pati — FinTech Department, RBI (Member-Secretary)
  4. Vinayak Godse — State Bank of India
  • A. 1 and 2
  • B. 2 and 3
  • C. 4 only
  • D. 1 and 4

Q3. Consider the following statements contrasting quantum computing with classical computing: 1. Unlike a classical bit, which is definitively either 0 or 1, a qubit can represent 0 and 1 simultaneously through superposition. 2. Peter Shor published his integer-factoring quantum algorithm in 2001, well after RSA cryptography had entered wide use. 3. Whereas classical parallelism requires many processors, entanglement allows the state of one qubit to be correlated with that of another. Which of the statements given above is/are correct?

  1. Unlike a classical bit, which is definitively either 0 or 1, a qubit can represent 0 and 1 simultaneously through superposition.
  2. Peter Shor published his integer-factoring quantum algorithm in 2001, well after RSA cryptography had entered wide use.
  3. Whereas classical parallelism requires many processors, entanglement allows the state of one qubit to be correlated with that of another.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q4. Regarding the impact of quantum computing on cryptography, which of the following statements is/are correctly identified? 1. Superposition allows a qubit to occupy a combination of the 0 and 1 states at once. 2. Entanglement is a correlation between qubits such that measuring one instantly influences the state of the other. 3. Shor's algorithm endangers RSA and elliptic-curve cryptography because it efficiently solves integer-factorisation and discrete-logarithm problems. 4. Quantum computers threaten symmetric-key ciphers such as AES far more severely than they threaten public-key systems such as RSA. Which of the above is/are correctly identified?

  1. Superposition allows a qubit to occupy a combination of the 0 and 1 states at once.
  2. Entanglement is a correlation between qubits such that measuring one instantly influences the state of the other.
  3. Shor's algorithm endangers RSA and elliptic-curve cryptography because it efficiently solves integer-factorisation and discrete-logarithm problems.
  4. Quantum computers threaten symmetric-key ciphers such as AES far more severely than they threaten public-key systems such as RSA.
  • A. 1, 2 and 3
  • B. 1 and 4
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q5. The RBI's FREE-AI (Framework for Responsible and Ethical Enablement of Artificial Intelligence) committee, whose report was released in 2025, was chaired by which one of the following?

  • A. Dr. Pushpak Bhattacharyya, IIT Bombay
  • B. Dr. Anil Prabhakar, IIT Madras
  • C. Suvendu Pati, FinTech Department, RBI
  • D. Dr. L. Venkata Subramaniam, former IBM Quantum India Head

Q6. With reference to the RBI's FREE-AI framework (2025), which of the following statements is/are correctly identified? 1. It is built on seven guiding principles termed 'Sutras'. 2. Its recommendations apply to all RBI-regulated entities, including banks, NBFCs and payment system operators. 3. The committee's report put forward a total of 26 actionable recommendations. 4. The framework was issued by SEBI as a code for artificial intelligence in the capital markets. Which of the above is/are correctly identified?

  1. It is built on seven guiding principles termed 'Sutras'.
  2. Its recommendations apply to all RBI-regulated entities, including banks, NBFCs and payment system operators.
  3. The committee's report put forward a total of 26 actionable recommendations.
  4. The framework was issued by SEBI as a code for artificial intelligence in the capital markets.
  • A. 1, 2 and 3
  • B. 2 and 4
  • C. 1 and 3 only
  • D. 1, 2, 3 and 4

Q7. The Q-SAFE study of quantum applications in finance is anchored within the RBI department whose Chief General Manager serves as the committee's Member-Secretary. Which one of the following is that nodal department?

  • A. FinTech Department
  • B. Department of Payment and Settlement Systems (DPSS)
  • C. Department of Regulation
  • D. Department of Economic and Policy Research (DEPR)

Q8. Consider the following statements about the evolution of the RBI's fintech-related institutional arrangements: 1. A dedicated FinTech unit was first set up within the Department of Regulation in June 2018. 2. The RBI established a separate FinTech Department in January 2022. 3. The Regulatory Sandbox framework grew out of an inter-regulatory Working Group set up in 2016. Which of the statements given above is/are correct?

  1. A dedicated FinTech unit was first set up within the Department of Regulation in June 2018.
  2. The RBI established a separate FinTech Department in January 2022.
  3. The Regulatory Sandbox framework grew out of an inter-regulatory Working Group set up in 2016.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q9. In August 2024 NIST finalised its first set of post-quantum cryptographic standards. Consider the following: 1. ML-KEM (FIPS 203), a key-encapsulation mechanism based on CRYSTALS-Kyber 2. ML-DSA (FIPS 204), a digital-signature algorithm based on CRYSTALS-Dilithium 3. SLH-DSA (FIPS 205), a hash-based signature scheme derived from SPHINCS+ 4. AES-256 (FIPS 197), reissued in 2024 as a post-quantum key-exchange standard Which of the above is/are NOT correct?

  1. ML-KEM (FIPS 203), a key-encapsulation mechanism based on CRYSTALS-Kyber
  2. ML-DSA (FIPS 204), a digital-signature algorithm based on CRYSTALS-Dilithium
  3. SLH-DSA (FIPS 205), a hash-based signature scheme derived from SPHINCS+
  4. AES-256 (FIPS 197), reissued in 2024 as a post-quantum key-exchange standard
  • A. 1 and 2
  • B. 3 only
  • C. 4 only
  • D. 2, 3 and 4

Q10. Under India's National Quantum Mission, four Thematic Hubs (T-Hubs) have been set up at leading institutions. Consider the following T-Hub–host institution pairings: 1. Quantum Computing — IISc Bengaluru 2. Quantum Communication — IIT Madras (with C-DoT) 3. Quantum Sensing & Metrology — IIT Bombay 4. Quantum Materials & Devices — IIT Kanpur Which of the above pairings is/are NOT correctly matched?

  1. Quantum Computing — IISc Bengaluru
  2. Quantum Communication — IIT Madras (with C-DoT)
  3. Quantum Sensing & Metrology — IIT Bombay
  4. Quantum Materials & Devices — IIT Kanpur
  • A. 1 and 2
  • B. 4 only
  • C. 3 and 4
  • D. 2 only