Ransomware Attack Impacts 300 Small-Sized Lenders in India

A ransomware attack on C-Edge Technologies has disrupted payment services for customers of 300 small-sized lenders, including cooperative and regional rural banks in India. The breach has caused significant issues, but no financial loss has been reported. Restoration efforts are underway.

Customers of approximately 300 small-sized lenders across India have faced disruption in accessing payment services such as ATM withdrawals and UPI transactions due to a ransomware attack on technology service provider C-Edge Technologies.

The incident affected cooperative banks and regional rural banks reliant on C-Edge, a joint venture between SBI and TCS. Banking services beyond payments continue to function normally, according to officials.

For the past two days, clients have experienced issues following the discovery of the C-Edge system breach. Necessary precautions, including isolating the system, were implemented to protect the broader payment infrastructure, officials stated.

Despite the breach, no financial losses have been reported. The National Payments Corporation of India (NPCI) confirmed the ransomware attack's impact and temporarily isolated C-Edge from retail payment systems.

Restoration efforts are being conducted with urgency, and a thorough security review is in progress. According to a senior industry official, the system is expected to be fully operational by Thursday, after a third-party audit confirmed the isolation of the ransomware.

National Cooperative Union of India chairman Dileep Sanghani reported widespread issues among nearly 300 Indian banks, including 17 district cooperative banks in Gujarat.

Online transactions, such as RTGS and UPI payments, have been significantly affected, causing money sent from accounts to not reach the receivers, he explained.

Banks have been encountering these problems since July 29, with C-Edge Technologies citing a technical fault as the cause. No representatives from C-Edge were available for further comments.