Ransomware Attack Disrupts Operations of Over 200 Cooperative and Regional Rural Banks in India

The National Payments Corporation of India (NPCI) has confirmed that C-Edge Technologies, which manages critical systems for numerous cooperative and regional rural banks, has likely been compromised by a ransomware attack.

This incident has disrupted several systems operated by the company. A person directly aware of the matter told CNBC-TV18 on the condition of anonymity that the ransomware attack has impacted over 200 cooperative and regional rural banks whose systems are hosted by C-Edge Technologies.

What is C-Edge Technologies?

C-Edge is a joint venture between Tata Consultancy Services (TCS) and the State Bank of India (SBI). It is a technology, infrastructure, and service provider for financial institutions in India and abroad, according to its website.

In an official statement, NPCI disclosed that it has temporarily isolated C-Edge Technologies from accessing the retail payment systems it operates. This isolation measure is intended to prevent further spread of the ransomware and ensure the security of the national payment infrastructure. As a result of this isolation, customers of the banks serviced by C-Edge Technologies will be unable to access payment systems during this period.

Restoration Efforts Underway

Restoration efforts are being conducted on an urgent basis, with NPCI working closely with C-Edge Technologies to resolve the issue.

"It has been brought to NPCI's notice that C-Edge Technologies Ltd, a technology service provider who caters mostly to cooperative and regional rural banks, has been possibly impacted by a ransomware attack impacting a few of their systems. To prevent larger impact to the payment ecosystem, NPCI has temporarily isolated C-Edge Technologies from accessing the retail payment systems 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 in a statement.

NPCI added that restoration work was underway "on a war-footing" along with C-Edge Technologies and necessary security review was in process. It added that connectivity to the affected banks would be restored at the earliest.