Over 300 small banks have been cut off from the nation’s larger payment network to prevent any wider impact.
Approximately 300 small Indian local banks’ payment systems were forced to temporarily shut down due to a ransomware attack on a technology service provider, according to two people with direct knowledge of the situation.
According to them, C-Edge Technologies, a national supplier of banking technology solutions to small banks, was impacted by the hack.
An email requesting a response was not answered by C-Edge Technologies.
The nation’s banking and payment system regulator, the Reserve Bank of India, did not reply to a request for comment.
The National Payment Corporation of India (NPCI), an authority that oversees payment systems, said in a public advisory issued late on Wednesday 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.
The individuals, who are representatives of a regulatory body, claimed that in order to prevent any wider impact, over 300 small banks have been cut off from the nation’s larger payment network.
“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.
Almost 1,500 cooperative and regional banks operate in India; the majority of these banks are located outside the major cities. According to the sources, several of these banks have been impacted.
According to the second source, NPCI is performing an audit to make sure the attack doesn’t spread.
According to banking sector sources and the first source, Indian banks have received warnings from the RBI and cyber authorities in the last several weeks regarding potential cyberattacks.
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