The National Payments Corporation of India (NPCI) reported on Wednesday that C-Edge Technologies Ltd, a technology service provider primarily serving cooperative banks and regional rural banks (RRBs), has been affected by a ransomware attack. This incident has potentially disrupted operations for hundreds of banks.
Some of the top names from Cooperative Sector which are the clients of C-Edge technologies are: Gujarat State Cooperative Bank, Ahmedabad District Cooperative Bank, Meghalaya Cooperative Apex Bank Limited, West Bengal State Cooperative Bank, Sabarkantha DCCB, Surat People’s Cooperative Bank and others.
In response to the attack, NPCI has temporarily disconnected C-Edge Technologies from accessing its retail payment systems to prevent further impact on the payment ecosystem. Consequently, customers of the affected banks are currently unable to access payment services facilitated by NPCI.
Efforts to restore normalcy are ongoing, with NPCI working closely with C-Edge Technologies to resolve the issue and conducting a thorough security review. The aim is to reinstate connectivity to the impacted banks as swiftly as possible.
C-Edge Technologies, a joint venture between Tata Consultancy Services Ltd. (TCS) and State Bank of India (SBI), plays a crucial role in the financial infrastructure of cooperative and regional rural banks.
In related developments, the Gujarat Pradesh Congress Committee highlighted that the cyber attack has significantly disrupted digital operations in the state’s cooperative banking sector. Transactions worth over Rs 5,000 crore have been affected, including NEFT, RTGS, UPI, and other digital payment platforms, reports Desh Gujarat.
Party spokesperson Hemang Raval criticized the lack of transparency from bank authorities, who have not adequately informed customers about the situation. He expressed concerns over the substantial investments in cybersecurity and the possible connections between the subcontracted software company and influential figures related to the banks.
The affected customers have lodged numerous complaints but have yet to receive satisfactory responses, highlighting the urgent need for intervention by relevant authorities to safeguard the financial interests of account holders.
Strangely, the RBI, which should have promptly issued an official statement to clarify the situation and calm the public’s concerns, has remained silent. This inaction has reinforced the perception of it being a slow government machinery.
