Ransomware Attack On Service Provider Hits 300 Small Banks Across India

NEW DELHI, July 31: A ransomware attack on a technology service provider has forced payment systems across nearly 300 small local banks in India to shut down temporarily, two sources directly aware of the matter said.

The attack affected C-Edge Technologies, a provider of banking technology systems to small banks across the country, they said.

C-Edge Technologies did not respond to an email seeking comment. The Reserve Bank of India did not respond to Reuters' request for comment.

The National Payment Corporation of India (NPCI), an authority that oversees payment systems, in a public advisory issued late on Wednesday, said that it had "temporarily isolated C-Edge Technologies from accessing the retail payments system operated by NPCI."

"Customers of banks serviced by C-Edge will not be able to access payment systems during the period of isolation," the NPCI said.

Nearly 300 small banks have been isolated from the country's broader payment network to prevent any wider impact, the sources, who are officials at a regulatory authority, said.

"Most of these are small banks and only about 0.5% of the country's payment system volumes would be impacted," said one of the sources.

India has nearly 1,500 cooperative and regional banks which mostly have operations outside big cities. It is some of these banks that have been affected, said the sources.

NPCI is conducting an audit to ensure that the attack does not spread, the second source said.

The RBI and the Indian cyber authorities have warned Indian banks about possible cyber attacks in the past few weeks, banking industry sources and the first source said.

New FASTag Rules Come Into Effect On August 1

NEW DELHI, July 31: Starting August 1, 2024, the National Payments Corporation of India (NPCI) will enforce new guidelines for FASTag users, focusing on updated Know Your Customer (KYC) requirements.

FASTag is a pre-paid tag facility for vehicles that allows non-stop movement of traffic without having to wait at the toll plazas. The FASTag KYC check has been introduced to enhance the efficiency of the electronic toll collection system and provide seamless movement at toll plazas.

Here are the key changes:

KYC Update: FASTag users must update their KYC details until October 31, especially if their FASTag is between 3 to 5 years old

Replacement of Old FASTags: Any FASTags older than five years must be replaced.

Linking Vehicle Details: Vehicle registration number and chassis number must be linked with the FASTag

New Vehicle Registration Update: New vehicle owners must update their FASTag with the vehicle's registration number within 90 days of purchase.

Database Verification: FASTag providers must verify their databases

Photo Upload Requirement: To improve identification and security, FASTag providers are now required to upload clear, high-quality photos of the vehicle's front and side.

Mobile Number Linking: To ensure seamless communication and timely updates, it's mandatory to link each FASTag to a mobile number.

FASTag is a revolutionary pre-paid tag facility for vehicles that uses technology to eliminate bottlenecks on toll plazas across India. Once the FASTag is active, it is affixed on the vehicle's windscreen and information on it is passively read by the antennae at the toll plaza, debiting the toll amount from one's bank account that is linked to the FASTag.

With a penetration rate of around 98% and over eight crore users, FASTag has revolutionised the country's electronic toll collection system. It employs Radio Frequency Identification (RFID) technology for toll payments directly from the account linked to it.

Users can buy FASTags from toll plazas, petrol pumps of Indian Oil, Hindustan Petroleum, Bharat Petroleum, banks, PAYTM and Amazon. Using FASTag comes with several benefits. It provides uninterrupted traffic movement, helps save paper, reduces pollution, and traffic congestion, and is convenient and cashless.

India's Forex Reserves Rise To New High Of $670 Billion As RBI Mops Up Bond Inflows

NEW DELHI, July 28: India's foreign exchange reserves swelled to another all-time high of $670.8 billion for the week ended July 19, the Reserve Bank of India data showed on Friday. The central bank continued to soak up dollar inflows into the domestic debt market following India's inclusion in a key bond index last month.

The forex kitty rose by $4 billion over the previous reporting week, marking the third straight weekly increase.

The reserve pile had recovered after hitting a low of $524.5 billion in October 2022 as the central bank replenished its kitty amid solid overseas inflows.

Foreign investors have pumped in Rs 1.4 lakh crore into the country's debt and equity markets so far this year, according to data from the National Securities Depository Ltd. The capital flow has largely gone into the domestic debt market, thanks to India's inclusion in the JPMorgan Global Emerging Market Bond Index.

July has seen Rs 17,848 crore and Rs 35,886 crore make its way into Indian bonds and equities, respectively.

For the week-ended July 19, foreign currency assets—a major component of the reserves—rose by $2.6 billion to $588 billion, RBI data showed.

In dollar terms, foreign currency assets include the effect of the appreciation or depreciation of non-US units like the euro, pound and yen held in foreign exchange reserves.

Gold reserves increased by $1.3 billion to nearly $60 billion during the week.

Paytm Gets Government Nod To Apply For Payment Aggregator License

NEW DELHI, July 27: One97 Communications Ltd., the operator of Paytm, has received approval from the government to apply for a payment aggregator license, according to people with knowledge about the matter.

With this approval, Paytm's subsidiary, Paytm Payment Services, can apply for the license with the Reserve Bank of India as its business has faced restrictions since March 2023, it is learnt.

The nod comes after the government has been assured that the funds in Paytm Payments Services accounts are from the group's own sources and not from foreign funding. This was a point of contention for the RBI, which had asked Paytm to get the government to certify the source of these funds.

In lieu of this, the regulator had barred Paytm Payments Services from acquiring new customers, in March 2023.

Earlier this year, the RBI also clamped down on Paytm Payments Bank, another firm that was earlier linked to Paytm. The full financial impact of this action was seen in the company's Q1 earnings, with net loss and Ebitda loss widening, according to the company.
Shares of One 97 Communication Ltd. hit a 10% upper circuit and rose to Rs 505.05 apiece, the highest level since Feb. 8. It remained locked in the upper circuit as of 2:46 p.m. This compares to a 1.64% advance in the NSE Nifty 50 Index.

The stock has declined 35.42% in the last 12 months and 19.89% on a year-to-date basis. Total traded volume so far today was 1.9 times its 30-day average. The relative strength index was at 71.22.

Out of 17 analysts tracking the company, four maintain a 'buy' rating, six recommend a 'hold,' and seven suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 14.1%.

Costly vegetables push retail inflation to 4-month high of 5.08% in June

NEW DELHI, July 12: Retail inflation increased to four-month high of 5.08 per cent in June as food items, including vegetables became dearer, according to government data released on Friday.

The Consumer Price Index (CPI) based retail inflation was on a decline since January, before rising again in June. The CPI-based retail inflation was 4.8 per cent in May 2024 and 4.87 per cent in June 2023. The previous high was in February at 5.09 per cent.

Inflation in the food basket was 9.36 per cent in June, up from 8.69 per cent in May, according to the data of the National Statistical Office (NSO).

The government has tasked the Reserve Bank to ensure that the CPI inflation remains at 4 per cent with a margin of 2 per cent on either side.

The highest inflation was in vegetables at 29.32 per cent, followed by 'pulses and products' at 16.07 per cent in June on an annual basis.

advertisements