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Difficulty: HardExplicit and Fact-Based Information Extraction

Read the following passage carefully:

"In February 2026, the Department of Telecommunications (DoT) notified the Indian Quantum Security Infrastructure Framework (IQSIF) to safeguard critical digital infrastructure against quantum decryption threats. Under the framework, all public sector banks and Tier-1 telecom operators are mandatorily required to migrate their core transmission links to Quantum Key Distribution (QKD) by December 2028, whereas private non-banking financial companies (NBFCs) are exempt from mandatory compliance, though they may voluntarily adopt QKD for financial incentives. The framework explicitly specifies that QKD deployment grants will cover up to 40% of capital expenditure for indigenous equipment only, excluding foreign-sourced hardware without exception. Furthermore, while terrestrial QKD nodes must be established at maximum intervals of 100 kilometers without optical amplifiers, satellite-based quantum nodes are governed under a separate operational directive issued by the Department of Space, not the DoT."

Based strictly on the explicit facts provided in the passage above, which of the following statements are correct?

  1. Private non-banking financial companies are not mandatorily required under the framework to adopt Quantum Key Distribution for their core links.Answer
  2. B
    Deployment grants under IQSIF provide up to 40% capital expenditure coverage for both indigenous and certified foreign-sourced hardware.
  3. The operational directives governing satellite-based quantum nodes fall under the jurisdiction of the Department of Space rather than the Department of Telecommunications.Answer
  4. D
    Terrestrial QKD nodes can extend beyond 100 kilometers if high-gain optical amplifiers are integrated into the core transmission links.

Answer

The correct statements are that private non-banking financial companies are exempt from mandatory QKD adoption, and that operational directives for satellite-based quantum nodes fall under the Department of Space.
The statements confirming that private NBFCs are exempt from mandatory compliance and that satellite-based quantum nodes are governed by the Department of Space are directly supported by explicit sentences in the text. The passage clearly contrasts the mandatory requirement for banks/telecoms with voluntary adoption for NBFCs, and explicitly assigns satellite-based node directives to the Department of Space.

Step-by-Step Solution

1
Locate explicit mentions of private non-banking financial companies (NBFCs) in the passage.
The text states that 'private non-banking financial companies (NBFCs) are exempt from mandatory compliance, though they may voluntarily adopt QKD'.
This confirms that NBFCs are not under mandatory requirement.
2
Verify the conditions for QKD deployment grant eligibility.
The passage specifies grants cover 'up to 40% of capital expenditure for indigenous equipment only, excluding foreign-sourced hardware without exception'.
Including foreign-sourced hardware directly contradicts the explicit exclusion in the text.
3
Identify the governing entity for satellite-based quantum nodes.
The text highlights that 'satellite-based quantum nodes are governed under a separate operational directive issued by the Department of Space, not the DoT'.
This directly confirms the Department of Space has jurisdiction over satellite-based nodes.
4
Examine the technical conditions for terrestrial QKD node spacing.
The passage dictates 'terrestrial QKD nodes must be established at maximum intervals of 100 kilometers without optical amplifiers'.
Assuming amplifiers allow exceeding 100 km introduces outside technical assumptions that violate the literal prohibition 'without optical amplifiers'.

Key Concept

Explicit Fact Extraction and Qualification Tracking
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Topics

Explicit and Fact-Based Information Extraction

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