Ransomware Attack Hits 300 Small Banks Across India: ATMs Affected, Online Transactions Disrupted

A massive ransomware attack has struck India's banking sector, affecting over 300 small-sized lenders across the country. The attack, which targeted technology service provider C-Edge Technologies, has disrupted online transactions, including cash withdrawals at ATMs and UPI payments, news agency PTI reported.

C-Edge, a joint venture between State Bank of India (SBI) and Tata Consultancy Services (TCS), provides payment services to cooperative banks and regional rural banks. The attack, which was detected on July 29, has left customers of these banks unable to access their money.

According to officials, the attack has not resulted in any financial loss, but has caused significant inconvenience to customers. "The issue is being faced by customers of cooperative banks and regional rural banks which depend on C-Edge," said a senior industry official.

The National Payments Corporation of India (NPCI) has temporarily isolated C-Edge from accessing retail payment systems to prevent the spread of the malware. Restoration work is underway on a war footing, and a necessary security review is in process.

Dileep Sanghani, chairman of the National Cooperative Union of India, said nearly 300 banks in India, including 17 district cooperative banks in Gujarat, have been experiencing issues for the last two-three days. "All online transactions, such as RTGS and UPI payments, are affected. Money is deducted from the sender's account but does not get credited in the receiver's account," he said.

Officials are working to resolve the issue, and assurance has been given that a solution will arrive by Thursday morning or afternoon. The impacted banks account for less than 1% of the overall payment system volume in the country.