UPI, IPMS, and other payment systems offered by some banks will not be momentarily accessible to users, according to the National Payments Corporation of India (NPCI). The reason for this was a "ransomware" attack on the systems of C-Edge Technologies, a service provider to multiple institutions.

Cybercriminals use ransomware attacks, in which malicious software encrypts the data of their victims or prevents them from accessing their computers and demands a ransom to unlock the system.

“To prevent a larger impact on 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."NPCI clarified.

According to NPCI, Cooperative and regional rural banks can obtain technology services from C-Edge.” It has been brought to NPCI’s notice that C-Edge Technologies, 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."

It further added, “Restoration work is underway on a war footing along with C-Edge Technologies and necessary security review is in process. Connectivity to the affected banks shall be restored at the earliest."

As per the regulatory authority officials, nearly 300 small banks in India have been disconnected from the country’s broader payment network to prevent any potential widespread disruptions.

Since the affected banks are mainly small and cooperative institutions with limited operations outside major cities, only about 0.5% of the country’s overall payment system volumes are expected to be impacted.

India’s National Payments Corporation of India (NPCI) is conducting an audit to prevent the spread of a cyberattack that has affected some of the country’s 1,500 cooperative and regional banks, which primarily operate outside major cities.  Industry sources have confirmed that RBI and Indian cyber authorities had recently warned banks of possible cyberattacks in the past few weeks.  

Image source: PTI