In a recent turn of events, India witnessed another ransomware attack on July 31, 2024. According to the NPCI (National Payments Corporation of India), C-Edge Technologies Ltd., a tech service provider to RRBs (Regional Rural Banks), was possibly hit by a ransomware attack. The regulator mentioned that only cooperative and small banks were affected by the attack.
In response to this attack, NPCI temporarily blocked C-edge technology from accessing the country’s retail payments system. Because of this, nearly 300 banks out of 1,500 cooperative and regional banks have been cut off from the nation’s broad payment network to minimise the area of impact. Further, NPCI is conducting an audit to ensure that the impact of the attack does not spread any further.
In a public advisory, the regulator stated, “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.”
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C- Edge Technologies is a Mumbai-based joint venture between software giant TCS and the State Bank of India. It primarily offers payment services to regional rural and cooperative banks. According to data from Tracxn, C-Edge Technologies reported operational revenue of Rs 355 crore in FY23 and a net profit of Rs 85 crore. The company specialises in providing payment technology, core banking systems, and compliance solutions for banks.
However, this temporary lockdown will not significantly impact the country’s payment system volume as most of these banks are small. As per NDTV, this temporary block of banks will have an impact of merely 0.5% on the payment system. Also, the regulator mentioned, “Restoration efforts are in full swing, and a comprehensive security review is underway. We are working diligently to restore connectivity for the impacted banks as soon as possible.”
