NPCI Suspends Payment Systems Due to Ransomware Attack on C-Edge Technologies

NPCI temporarily suspends UPI, IPMS, and other payment systems for certain banks following a ransomware attack on C-Edge Technologies, affecting cooperative and regional rural banks.

Key Points

• NPCI isolates C-Edge Technologies due to a ransomware attack, suspending UPI, IPMS, and other payment systems for certain banks.
• C-Edge Technologies serves mainly cooperative and regional rural banks.
• At least 17 district cooperative banks in Gujarat, including Amreli DCCB, are affected.
• Restoration efforts are underway, with security reviews in progress to restore connectivity.
• Banking industry experts assure customers of robust security measures and timely action by regulatory bodies.

The National Payments Corporation of India (NPCI) has issued a notice stating that UPI, IPMS, and other payment systems of certain banks will be temporarily unavailable due to a ransomware attack on C-Edge Technologies. C-Edge Technologies, a service provider to several banks, has been isolated by NPCI to prevent a larger impact on the payment ecosystem.

The notice, dated July 31, 2024, at 6:39 pm, was posted on social media by NPCI. It informs customers that those serviced by banks relying on C-Edge Technologies will experience disruptions in accessing payment systems during this period of isolation.

C-Edge Technologies primarily caters to cooperative and regional rural banks. The ransomware attack has impacted several of their systems, prompting NPCI to take precautionary measures. Dileep Sanghani, Chairman of the National Cooperative Union of India, confirmed that online transactions of at least 17 district cooperative banks in Gujarat, including the Amreli District Central Cooperative Bank (DCCB), have been affected due to the issues with C-Edge software.

In response to the attack, restoration efforts are underway with C-Edge Technologies, and a thorough security review is being conducted. NPCI assures that connectivity to the affected banks will be restored as soon as possible.

Vishal Maru, Head of Global Processing at FSS, emphasized that banking customers need not worry about such attacks. “The Indian banking industry and system are robust and highly efficient. Today, banks have the required checks and security systems in place to ensure that their customers’ assets and data are taken care of. As we have seen in this case as well, the measures were taken on time by the banks, the regulatory bodies managed to act swiftly and take the required measures to minimize the effects of the attack,” he stated.

As the restoration process continues, NPCI and the affected banks are working diligently to ensure minimal disruption and maintain the security and integrity of the banking ecosystem.