Ransomware Attack Forces 300 Small Indian Banks To Temporarily Stop Payment Systems: Report

A ransomware attack on a technology service provider has forced payment systems across at least 300 small local banks to temporarily shut down. The National Payment Corporation of India is conducting an audit to ensure that the attack does not spread, sources said. 

According to sources directly aware of the matter, the attack affected C-Edge Technologies, which is a provider of banking technology systems to small banks across India.

The National Payment Corporation of India (NPCI), an authority that oversees payment systems, in a public advisory issued late on Wednesday (July 31) said it had “temporarily isolated C-Edge Technologies from accessing the retail payments system operated by NPCI”. 

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

Sources said at least 300 small banks were isolated from the broader payment network to prevent any wider impact. “Most of these are small banks and only about 0.5% of the country’s payment system volumes would be impacted,” said one of the sources.

India has nearly 1,500 cooperative and regional banks, which mostly have operations outside big cities. Some of these banks have been affected, the sources said.

The Reserve Bank of India (RBI) and the cyber authorities have warned banks about possible cyber attacks in the last few weeks, the sources added.

C-Edge Technologies did not respond to an email seeking comment. The RBI also did not respond to a request for comment. 

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)