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A ransomware attack on a tech provider has caused payment systems in nearly 300 local Indian banks to temporarily shut down, according to two reliable sources.
The attack affected C-Edge Technologies, a provider of banking technology systems to small banks across the country, they said.
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C-Edge Technologies did not respond to an email seeking comment.
The Reserve Bank of India, the country’s banking and payment system regulator, did not respond to Reuters’ request for comment.
The National Payment Corporation of India (NPCI), an authority that oversees payment systems, in a public advisory issued late on Wednesday, said 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.
Nearly 300 small banks have been isolated from the country’s broader payment network to prevent any wider impact, the sources, who are officials at a regulatory authority, said.
“Most of these are small banks and only about 0.5 per cent of the country’s payment system volumes would be impacted,” said one of the sources.
India has nearly 1,500 smaller banks which are mostly located outside of major cities.
NPCI is conducting an audit to ensure that the attack does not spread, the second source said.
The RBI and the Indian cyber authorities have issued warnings to Indian banks about potential cyber attacks in recent weeks, according to banking industry sources and the first source said.
Source: Reuters, DW
