Synopsis: A ransomware attack on C-Edge Technologies has disrupted over 200 cooperative and regional rural banks in India. The National Payments Corporation of India (NPCI) isolated C-Edge from its payment system to mitigate the impact, and restoration efforts are ongoing, including security reviews and forensic audits.
Over 200 cooperative and regional rural banks are facing significant outages due to a ransomware attack on their core banking provider, C-Edge Technologies.
The National Payments Corporation of India (NPCI) has taken swift action to mitigate the impact of the attack.
C-Edge Technologies, promoted by State Bank of India (SBI) and Tata Consultancy Services (TCS), was temporarily isolated from NPCI's payment system following the ransomware incident.
In an official statement, NPCI explained, "C-Edge Technologies, a technology service provider catering mostly to cooperative and regional rural banks, has been possibly impacted by a ransomware attack affecting a few of their systems. To prevent a larger impact on the payments ecosystem, NPCI has temporarily isolated C-Edge Technology from accessing the retail payment 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 also emphasized that restoration efforts are being conducted on a war footing, with a comprehensive security review underway.
Connectivity to the affected banks will be restored as soon as possible.
C-Edge Technologies has appointed an auditor to conduct a forensic audit and submit a report on the incident.
C-Edge Technologies offers a comprehensive core banking service using an outsourced application service provider model.
This service is particularly beneficial for small banks that cannot afford to purchase a core banking solution, allowing them to connect all their branches and manage operations from a single system.
Most of the regional rural banks serviced by C-Edge are subsidiaries of SBI and other public sector banks.
Despite the large number of banks affected, sources indicate that the share of these banks in electronic transactions is less than 0.5%, as most are small rural lenders.
In conclusion, the ransomware attack on C-Edge Technologies highlights the vulnerabilities in the banking sector's digital infrastructure, particularly among smaller cooperative and regional rural banks.
The swift response by NPCI to isolate the affected provider underscores the importance of proactive measures in mitigating cyber threats.
As restoration efforts continue and forensic audits are conducted, the incident serves as a critical reminder of the need for robust cybersecurity protocols to protect the financial ecosystem.
Disclaimer: This article is based on the current information available about the ransomware attack on C-Edge Technologies. Details and outcomes may change as the situation develops and further reports are released. Please refer to official sources for the most up-to-date information.
