A ransomware attack on a technology services provider has temporarily shut down the payment systems of about 300 smaller Indian local banks, two sources directly familiar with the matter said.
He said the attack has affected C-Edge Technologies, which provides banking technology systems to small banks across the country.
C-Edge Technologies did not respond to an email seeking comment.
The Reserve Bank of India, the country’s banking and payment systems regulator, did not respond to a Reuters request for comment.
The National Payments Corporation of India (NPCI), the body that oversees payment systems, said in a public consultation issued late Wednesday night that it has “temporarily delinked C-Edge Technologies from access to the retail payment systems operated by NPCI.”
“Customers of banks served by C-Edge will not be able to access the payment systems during the quarantine period,” NPCI said.
Sources, who are officials of a regulatory authority, said around 300 small banks have been isolated from the country’s wider payments network to prevent any wider impact.
“Most of these are small banks and only 0.5 per cent of the country’s payment system will be impacted,” a source said.
India has about 1,500 cooperative and regional banks that operate outside big cities. Sources said some of these banks have been affected.
The second source said NPCI was conducting an audit to ensure the attack does not spread.
Banking industry sources and first-hand sources said the RBI and Indian cyber authorities have warned Indian banks about potential cyber attacks in the past few weeks.