Nation

IIE DIGITAL DESK: In a significant blow to India's digital payment infrastructure, a widespread ransomware attack has disrupted ATM and UPI services nationwide. The cyberattack, which began early yesterday, has affected numerous banks and payment service providers, rendering ATMs inoperable and halting UPI transactions for millions of users.

The National Payments Corporation of India (NPCI), which oversees UPI operations, confirmed the attack, stating that immediate measures are being taken to restore normalcy. "We are working closely with affected banks and cybersecurity experts to resolve the issue as swiftly as possible," an NPCI spokesperson said.

Customers have reported difficulties in withdrawing cash, making online payments, and transferring funds. The disruption has caused significant inconvenience, particularly for those dependent on digital transactions for their daily needs. Many have taken to social media to express their frustration, highlighting the urgency of the situation.

Banking experts warn that such cyberattacks underline the vulnerabilities in the digital payment ecosystem and call for enhanced cybersecurity measures. The Reserve Bank of India (RBI) has also issued a statement urging banks to strengthen their security protocols to prevent future breaches.

 Ransomware attack targets 300 banks across India; UPI, ATM services disruptedIMPI and RTGS transactions were also affected due to the disruption

Cybersecurity hacked

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The National Payment Corporation of India (NPCI) said that nearly 300 banks in the country were hit by a renasomware attack on a tech service company.

NPCI said payment services of these banks, including UPI, IMPI, RTGS and ATM transactions, will experience interruptions.

After C-Edge Technologies, which provides tech services to several banks, was targeted in the attack, the NPCI said it has temporaily isolated the company from accessing its retail payments in order to avoid a larger impact to the broader ecosystem.

C-Edge provides services to various small cooperative and regional banks across India and the 300 affected banks come under this category. These include 17 district cooperative banks in Gujarat. There are around 1,500 such small banks in the country.

NPCI said a security review is underway and it is looking at restoring the services on a war-footing. The affected customers were reportedly alerted regarding the interruptions.