Ransomware Attack Hits Indian Banks' Payment Systems; Nearly 300 Banks Affected

New Delhi, India: A significant ransomware attack targeting C-Edge Technologies, a crucial provider of banking technology systems to small Indian banks, has caused widespread disruption across nearly 300 local banks' payment systems, according to sources cited by Reuters. The attack prompted the National Payment Corporation of India (NPCI), responsible for overseeing payment systems, to take swift action. In a late Wednesday advisory, NPCI announced the temporary isolation of C-Edge Technologies from accessing its retail payments system.

"As a result, customers of banks serviced by C-Edge will experience disruptions in accessing payment systems during this isolation period," NPCI stated, highlighting the immediate impact on a broad spectrum of small banks across the country.

Sources within regulatory authorities indicated that the affected banks primarily include cooperative and regional institutions, which operate predominantly outside major urban centers. Despite the scale of disruption, officials reassured that the broader impact on India's payment system volumes is estimated to be minimal, affecting approximately 0.5% of the total transactions.

"NPCI has initiated an audit to contain and mitigate the spread of the attack," assured a second source familiar with the matter, underlining efforts to safeguard against further repercussions. Meanwhile, the Reserve Bank of India, the country's banking and payment system regulator, has yet to comment on the unfolding situation.