Ransomware Attack Hits 300 Indian Banks, Disrupts Payment Systems

New Delhi: A major cybersecurity incident has occurred, with a ransomware attack on C-Edge Technologies—a crucial technology service provider for small banks across India—leading to the temporary shutdown of payment systems for nearly 300 local financial institutions.

Sources close to the situation revealed that the attack forced immediate measures to isolate the affected banks from the broader payment network, according to a report by Reuters.

Neither C-Edge Technologies nor the Reserve Bank of India (RBI), which regulates banking and payment systems in the country, have responded to requests for comment.

NPCI's Response

On late Wednesday, the National Payment Corporation of India (NPCI) issued a public advisory confirming that it had “temporarily isolated C-Edge Technologies from accessing the retail payments system operated by NPCI.” This isolation was described as a precautionary measure to prevent any broader impact on the national payment infrastructure.

The advisory stated, “Customers of banks serviced by C-Edge will not be able to access payment systems during the period of isolation.”

Scope of the Disruption

According to officials from a regulatory authority, nearly 300 small banks, primarily operating outside major urban centers, have been cut off from the payment network. Despite the disruption, one source noted that these banks represent only about 0.5% of the country's total payment system volumes.

Ongoing Assessments

The NPCI is currently conducting an audit to assess the situation and mitigate further risks. Additionally, the RBI and Indian cyber authorities have recently issued warnings to financial institutions about potential cyber threats.

This incident underscores the vulnerability of financial institutions to cyberattacks and highlights the critical need for robust cybersecurity measures to protect the integrity of the nation's payment systems.