Ransomware Attack Hits 300 Indian Banks, Disrupts Payment Systems

A ransomware attack on Wednesday attacked and paralysed payment systems in nearly 300 small Indian banks, primarily affecting rural and cooperative financial institutions.

A ransomware attack on Wednesday attacked and paralysed payment systems in nearly 300 small Indian banks, primarily affecting rural and cooperative financial institutions. The cybersecurity breach targeted C-Edge Technologies, a crucial provider of banking technology solutions for smaller financial entities across India, news agency Reuters has reported.

What NPCI Has To Say

The ransonware attack forced regulatory bodies to take swift action and the National Payment Corporation of India (NPCI) has temporarily disconnected C-Edge Technologies from accessing its retail payment network. This measure aims to contain the potential spread of the cyber threat, the report added.

NPCI posted from its official X handle: "Regarding interruption in retail payments."

After NPCI's move, customers of banks serviced by C-Edge were unable to access various payment systems. 

India's banking landscape comprises approximately 1,500 cooperative and regional banks, predominantly serving areas beyond major metropolitan centres. The affected institutions represent a significant portion of this sector, raising concerns about the cybersecurity preparedness of rural banking infrastructure. Regulatory authorities are conducting thorough audits to assess the extent of the damage and prevent further spread of the attack. The Reserve Bank of India (RBI), the country's central banking authority, has yet to comment on the situation, the Reuters report added.

This incident underscores the critical need for robust cybersecurity measures in the financial sector, especially for smaller banks that may have limited resources for advanced security systems. It also emphasises the importance of regular security audits and the implementation of comprehensive disaster recovery plans. The report also noted that experts stress the importance of swift resolution to minimise disruption to local economies and maintain public trust in the banking system. The incident serves as a wake-up call for enhanced cybersecurity measures across India's diverse banking landscape.