A ransomware attack targeting C-Edge Technologies, a key technology service provider for small banks in India, has led to the temporary shutdown of payment systems across nearly 300 local banks. The disruption was confirmed by two sources familiar with the situation.
The National Payment Corporation of India (NPCI) issued a public advisory on Wednesday, stating that it had “temporarily isolated C-Edge Technologies from accessing the retail payments system operated by NPCI.” This measure was taken to contain the impact and prevent the ransomware from affecting the broader payment network.
“Customers of banks serviced by C-Edge will experience disruptions in payment services during this period of isolation,” the NPCI announced. The isolation affects around 300 small banks, which represent a fraction—approximately 0.5%—of the country’s total payment system volumes, according to regulatory officials.
India’s network of nearly 1,500 cooperative and regional banks, primarily operating outside major cities, has been particularly affected. NPCI is currently conducting an audit to ensure the attack is contained and does not escalate further.
Recent warnings from the Reserve Bank of India (RBI) and Indian cyber authorities about potential cyber threats underscore the growing need for robust cybersecurity measures within the banking sector.
