Introducing Employee Bank Verification in Keka

We're excited to announce the launch of our new Employee Bank Verification feature. This new addition to Keka enables the admins to verify the bank details of employees by depositing a small amount ₹1 into their bank accounts. This process, known as "penny drop" verification, ensures the accuracy of bank details, preventing salary transfer failures and ensuring timely payments.

Table of contents

• Why Employee Bank Verification?

• How It Works

• Verification Process

  • Individual Employee Verification

  • Bulk Employee Verification

• Status Updates For Bank Verification

• Re-Verfication Process

• Verification Via Manage Payment Section.

Why Employee Bank Verification?

Without a verification mechanism in place, inaccuracies in bank details are often only discovered when a salary transfer fails. This can lead to the need to reach out to employees for accurate information, update the system, and reprocess the payroll to ensure the correct bank details are captured. This process is not only time-consuming but also disruptive to the payroll workflow.

The Employee Bank Verification feature addresses these challenges by enabling you to verify bank details proactively, ensuring that all information is correct before initiating salary transfers. This significantly reduces the risk of transfer failures and enhances the efficiency of payroll processing.

How It Works

Setup and Prerequisites

1. Add-On Purchase: The Employee Bank Verification feature is available as an add-on. You need to purchase this add-on to enable the feature. The price is ₹5 per verification. The charges for verifications will be deducted from the Keka credits in your account.
2. Privilege Assignment: Only privileged users (Global admin, payroll admin, HR manager) with the appropriate permissions can initiate bank verifications. However you can add this permission to other privileged users based on your preference. 

Verification Process

Individual Employee Verification

To verify an individual employee's bank details, start by Searching (1) for the employee and accessing their Employee Profile. Next, navigate to the Finances (2)  tab and click on Summary (3). Here, you will find the Payment Information section where you can view employee payment details.

 Click the action menu (three dots) (1) and select Initiate Verification (2).

Confirm the initiation of verification through a popup.

Bulk Employee Verification

To verify employee bank details in bulk, begin by clicking on the Payroll (1) option in the left navigation menu. Then, go to the Payroll Admin (2) tab and access the payroll operations (3)  section. From there, navigate to the Payroll Status, Tax Regime & Financial Details (4) section and proceed to the 4th operation titled Employee’s Payment Details and Bank Verification (5).

When you access the tab, make sure to select the appropriate paygroup (1) if you have multiple ones. Then, choose the employees you want to verify bank details for and click on the initiate verification (2) button. You can also use the filter (3) for bank verification status and payment mode to easily sort employees and start the verification process.

Confirm the initiation of verification through a popup.

After initiating the verification process, you can check the status in the Bank Verification Status column. If the verification (1) is successful but there is a red exclamation mark next to it, it means that the account holder's name does not match the records, and a warning will be displayed. In case of a failed (2) verification, clicking on the mark will also show you the reason for the failure, allowing you to address it promptly.

Status Updates For Bank Verification

• Not Initiated: Shown until verification is initiated.

• Verification Processing: Displayed when verification is in progress.

• Verification Failed: Indicates failed verification along with the reason for failure.

If the account holder's name does not match the records, a warning will be shown.

Re-verification

Any changes to bank details (bank name, account number, IFSC code) will reset the status to Not Initiated, and re-verification will be required. Name changes will not reset the verification status unless it resolves a previous discrepancy in the account holder's name. Ideally, re-verification is not required in case of a name mismatch but system will show a warning alerting you to the discrepancy.

 

Reverification may be necessary if there are any changes to the payment details: 

If you switch the payment method to cash/cheque after previously verifying the employee's bank details, you will only need to re-verify the bank details if there are any changes when switching back to bank payments in the future.

Verification Via Manage Payment Section

If the Employee Bank Verification add-on is activated and the bank verification for employees is still pending, a warning will appear in the manage payment section during the payroll processing. You can simply click on verify now, which will direct you to the payroll admin section for verifying bank details.