A major ransomware attack has struck C-Edge Technologies, a key provider of banking technology systems to numerous small Indian banks, causing significant disruptions across the payment systems of nearly 300 local banks, according to sources reported by Reuters. In response, the National Payment Corporation of India (NPCI), which oversees the country’s payment systems, swiftly intervened.

In an advisory issued late on Wednesday, NPCI announced that it had temporarily isolated C-Edge Technologies from its retail payments system to contain the situation.

“As a consequence, customers of banks that rely on C-Edge Technologies may encounter difficulties in accessing payment systems during this period of isolation,” the NPCI stated, noting the immediate impact on many small banks across India.

Regulatory sources indicated that the affected banks are primarily cooperative and regional institutions, most of which operate in areas outside of the major urban centers. Despite the widespread disruption, officials have sought to reassure the public that the overall impact on India’s payment system will be limited, with the affected transactions making up only about 0.5% of the nation’s total volume.

NPCI has initiated a comprehensive audit to assess the situation and mitigate further risks, according to a source familiar with the matter. The Reserve Bank of India, the primary regulator for the country’s banking and payment systems, has yet to issue a statement regarding the incident.

Real India resides in villages, as famously quoted by Mahatma Gandhi ji, hence cooperative banks play a vital role in pumping the rural economy with its capital needs. Such incidences on cooperatives must be delt with high severity and immediate measures to reoccurrence in future.

MP 🙂

Pic Credit: Freepik