Ransomware attack forces hundreds of small Indian banks offline, sources say

EDGE Technology

01/08/2024 02:30

(Repeats from Wednesday)
    By Jaspreet Kalra
       MUMBAI, July 31 (Reuters) - A ransomware attack on a
technology service provider has forced payment systems across
nearly 300 small Indian local banks to shut down temporarily,
two sources directly aware of the matter said.
    The attack affected C-Edge Technologies, a provider of
banking technology systems to small banks across the country,
they said.
    C-Edge Technologies did not respond to an email seeking
comment. 
    The Reserve Bank of India, the country’s banking and payment
system regulator, did not respond to Reuters' request for
comment.    
    The National Payment Corporation of India (NPCI), an
authority that oversees payment systems, in a public advisory
issued late on Wednesday said that 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. 
    Nearly 300 small banks have been isolated from the country’s
broader payment network to prevent any wider impact, the
sources, who are officials at a regulatory authority, said.
    "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. It is some of these
banks that have been affected, the sources said.    
    NPCI is conducting an audit to ensure that the attack does
not spread, the second source said. 
    The RBI and the Indian cyber authorities have warned Indian
banks about possible cyber attacks in the past few weeks,
banking industry sources and the first source said. 

(Reporting by Jaspreet Kalra. Editing by Jane Merriman)
((mailto:jaspreet.kalra@thomsonreuters.com; +91-8769636545;))