Ransomware Attack Hits 300 Indian Banks: Payment Systems Down

300 Indian Banks Hit by Ransomware Attack: Payment Systems Disrupted

A significant ransomware attack has temporarily crippled payment systems at nearly 300 small banks across India. The breach, targeting a key technology service provider, has disrupted banking operations nationwide.

Ransomware Attack Targets C-Edge Technologies

The attack struck C-Edge Technologies, a major provider of banking technology systems to smaller banks throughout India. This breach has led to the temporary shutdown of payment systems at these banks. C-Edge Technologies did not respond to requests for comment on the situation.

Impact on Payment Systems

The Reserve Bank of India (RBI), which regulates the country’s banking and payment systems, has not yet provided a public comment. The National Payment Corporation of India (NPCI) issued an advisory, announcing that C-Edge Technologies has been “temporarily isolated” from accessing the retail payments system operated by NPCI.

The NPCI’s statement noted, “Customers of banks serviced by C-Edge will not be able to access payment systems during the period of isolation.”

To prevent further disruption, nearly 300 small banks have been isolated from the broader national payment network. Sources from a regulatory authority indicated that the affected banks represent a small fraction—about 0.5%—of the country’s total payment system volumes.

Scope and Recovery Efforts

India boasts approximately 1,500 cooperative and regional banks, many of which operate outside major cities. It is primarily these smaller banks that have been impacted by the ransomware attack. NPCI is actively conducting an audit to ensure the attack does not escalate or spread further.

In response to rising cyber threats, the RBI and Indian cyber authorities had previously issued warnings to banks about potential cyber attacks, as reported by industry sources.

Aakhir Tak Editor-in-Chief

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