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A significant ransomware attack has disrupted operations for over 200 cooperative and regional rural banks in India. The attack targeted C-Edge Technologies, a technology service provider that specializes in providing core banking solutions for smaller financial institutions, particularly those unable to afford independent systems. This incident highlights the vulnerability of the Indian banking sector to cyber threats and underscores the importance of robust security measures.
The National Payments Corporation of India (NPCI) responded swiftly to the attack, disconnecting C-Edge Technologies from the retail payment system to prevent further damage. This isolation has resulted in temporary outages for customers of banks serviced by C-Edge, hindering their ability to access payment systems and services such as cash withdrawals and UPI payments. While the extent of financial losses is still being determined, the impact on the affected banks and their customers is undeniable.
C-Edge Technologies, a joint venture between the State Bank of India (SBI) and Tata Consultancy Services (TCS), has initiated restoration efforts and is undergoing a comprehensive security review. They have appointed an auditor to conduct a forensic investigation and submit a detailed report. The incident serves as a reminder of the critical need for banks to proactively strengthen their cybersecurity infrastructure and implement effective threat detection and response strategies to mitigate the risk of similar attacks.
Despite the large number of banks affected, the share of electronic transactions handled by these banks is relatively small, as most of them are rural lenders with limited digital operations. However, the disruption caused by the attack underscores the interconnectedness of the financial system and the potential for widespread impact, even if the direct financial losses are minimal. The Indian government and banking regulators are likely to scrutinize the incident and review existing security protocols to bolster the resilience of the financial sector against evolving cyber threats.
Source: Ransomware Attack: 200+ cooperative and rural banks face outage after malware attack