A ransomware attack recently targeted C-Edge Technologies, a company that provides technology solutions to small banks across India. This incident has caused a temporary shutdown of payment systems at nearly 300 small local banks. C-Edge Technologies, which plays a crucial role in managing banking technology for these institutions, has been isolated from the National Payment Corporation of India's (NPCI) retail payments system to contain the situation.

The NPCI, which oversees payment operations in India, issued a public advisory stating that C-Edge Technologies has been cut off from accessing its network. Consequently, customers of the affected banks are unable to process payments or access payment services. The banks impacted by this issue are mainly small, regional institutions, which handle only about 0.5% of the total payment volume in the country.

India has around 1,500 cooperative and regional banks, many of which are located outside major cities. These banks are the ones facing disruptions. The Reserve Bank of India (RBI) and Indian cyber authorities had recently issued warnings about potential cyber-attacks, but the threat materialized despite these precautions. NPCI is currently conducting an audit to prevent further spread of the attack.