NEFT processes transactions in batches throughout the day with no minimum amount limit; it is suitable for all salary payments. RTGS is for real-time gross settlement and has a minimum transaction amount of Rs 2 lakh; it is typically used for high-value individual payments. Most Indian companies use NEFT for monthly payroll. Zoho Payroll generates files compatible with both.
For direct deposit to work, each employee must have their bank account number, account type, and 11-digit IFSC code entered and verified in Zoho Payroll. The employer must have a corporate banking relationship with the selected bank. The payroll bank account in Zoho Payroll settings must match the actual corporate account from which transfers are made.
After initiating the transfer from the bank portal, the payroll admin updates the pay run status to ‘Paid’ in Zoho Payroll. Some bank integrations allow Zoho Payroll to confirm transfer success via bank API. For banks without direct API integration, admins manually confirm payment after checking the bank statement. Zoho Payroll’s payment history shows dates and amounts for all past transfers.
Direct Deposit in Zoho Payroll is the electronic payment of employee salaries directly to their bank accounts via NEFT or RTGS. Zoho Payroll generates the bulk transfer file after each finalised pay run, which is then uploaded to the employer’s corporate banking portal to initiate salary credits for all employees at once.
Zoho Payroll generates the bank transfer file, but in most cases the admin manually uploads it to the bank portal. Some bank-specific integrations may allow direct API-based payment initiation. Check with your bank and Zoho Payroll support for the availability of direct bank API integration for your specific bank.
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