Ransomware Attack on CBS Provider Hits Over 200 Cooperative and Regional Rural Banks, NPCI Restores Connectivity
Moneylife Digital Team 01 August 2024
More than 200 cooperative and regional rural banks are facing disruptions due to a ransomware attack. In response, the National Payments Corporation of India (NPCI) has disconnected their core banking provider, C-Edge Technologies, from the payment system. C-Edge Technologies, a company promoted by State Bank of India (SBI) and Tata Consultancy Services (TCS), primarily serves cooperative and regional rural banks. On Thursday evening, NCPI says it restored connectivity with C-Edge Technologies.
 
In a post on X (erstwhile Twitter), NPCI says, "To prevent larget impact to the payment ecosystem, NPCI has temporarily isolated C-Edge Technologies from the retail payment system operated by NPCI. Customers of bank serviced by C-Edge will not be able to acess payment systems during the period of isolation."
 
"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 will be restored at the earliest," it added.
 
C-Edge Technologies offers a comprehensive core banking service through an outsourced application service provider model, benefiting small banks that cannot afford their own core banking solution. This service connects all branches of these banks, allowing centralised management and control. 
 
According to media reports, most of the regional rural banks serviced by C-Edge are subsidiaries of SBI and other public sector banks (PSBs).
 
Despite the large number of banks serviced, the share of these banks in electronic transactions is less than 0.5%, as many are small rural lenders.
 
In a post on X at 6pm on Thursday, NCPI says the connectivity with C-Edge Technologies has been re-established.

 

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