Ransomware Attack Disrupts Payment Systems In Nearly 300 Small Banks In India

Ransomware attacks have affected payment systems at nearly 300 small local banks in India (photo: x @regular_hack)

JAKARTA - Ransomware attacks on technology service providers have forced payment systems in nearly 300 small local banks in India to be temporarily suspended. This was revealed by two sources who knew the matter firsthand.

The attack affected C-Edge Technologies, a provider of banking technology systems for small banks across India. C-Edge Technologies has not yet responded to email requests for comment.

Central Bank of India (Reserve Bank of India / RBI), regulator of the banking system and state payments, has also not responded to requests for comment from the media.

India's National Payment Corporation of India/NPCI), the authority overseeing the payment system, said in a public announcement released Wednesday evening, July 31 that it had "insulating temporarily C-Edge Technologies from access to the retail payment system operated by the NPCI."

"Bank customers served by C-Edge will not be able to access payment systems during isolation periods," said the NPCI.

Nearly 300 small banks have been isolated from the country's wider payment network to prevent a wider impact, said a source who is an official in regulatory authority.

"Most of them are small banks and only about 0.5% of the country's payment system volume will be affected," said one source.

India has nearly 1,500 cooperative and regional banks that mostly operate outside major cities. Some of these banks were affected by the attack, the source said.

The NPCI is conducting an audit to ensure that the attack does not spread further, a second source said.

RBI and Indian cyber authorities have warned banks in India about possible cyberattacks in recent weeks, the banking industry source and first source said.