A ransomware attack on a technology service provider has temporarily halted payment services for around 300 small Indian banks.
The attack targeted C-Edge Technologies, which provides banking technology systems to small banks across the country, leading to a shutdown of their payment operations.
As a result, customers of these banks were unable to withdraw cash from ATMs or use UPI services. The impact was particularly felt by customers of cooperative banks and regional rural banks, which rely on C-Edge, a joint venture between SBI and TCS.
In response, the National Payments Corporation of India (NPCI) issued a statement saying it had temporarily isolated C-Edge from accessing retail payment systems as a precautionary measure.
“C-Edge Technologies… has possibly been affected by a ransomware attack impacting a few of their systems,” NPCI stated.
Authorities are working urgently to restore the systems. According to PTI, a third-party audit was conducted after isolating the ransomware. If all goes according to plan, the system is expected to be operational by Thursday morning.
“During this period of isolation, customers of banks serviced by C-Edge will be unable to access payment systems,” NPCI noted.
A source added that most of the affected banks are small, and only about 0.5% of the country’s payment system volumes would be impacted.
National Cooperative Union of India chairman Dileep Sanghani reported that nearly 300 banks in India, including 17 district cooperative banks in Gujarat, have been experiencing issues for the past two to three days.
“All online transactions, such as RTGS and UPI payments, are affected. Money is deducted from the sender’s account but does not get credited to the receiver’s account,” said Sanghani, who is also the chairman of Amreli District Central Cooperative Bank.
