Tally Solutions, Indian Bank tie up to automate MSME payments

Tally Solutions, an Indian accounting software company, on Friday entered into a strategic partnership with one of the country’s foremost public sector banks, Indian Bank, to integrate e-payment capabilities on its platform TallyPrime through the lender’s cash management solution, IND Cash Optima.

The move is aimed at strengthening digital financial operations for enterprises, particularly small and medium businesses, by bringing accounting and banking functions onto a single platform. Indian Bank customers will now be able to initiate and manage vendor and payroll payments directly from TallyPrime, with transactions automatically recorded and reconciled within the system.

According to Tally, the integration will help SMEs cut payment and reconciliation time by over 70% by reducing manual intervention, errors, and fragmented workflows. “By bringing banking and accounting closer together, we aim to empower businesses, especially MSMEs, to handle their payments with greater accuracy, convenience, and confidence,” said Tejas Goenka, managing director, Tally Solutions.

The platform also enables businesses to import payment references such as UTR numbers from IND Cash Optima back into TallyPrime, ensuring seamless updates of transaction status. Users can additionally send payment advice to vendors and employees, enhancing transparency and communication.

Indian Bank said the collaboration underscores its digital-first approach. “By integrating our market-leading Cash Management solution with TallyPrime, we are offering a seamless, secure, and user-friendly option for businesses to manage vendor and payroll payments. This will drive digital adoption among MSMEs and promote a more agile financial ecosystem,” said Ashutosh Choudhury, executive director, Indian Bank.

The companies expect the solution to particularly benefit enterprises with high payment volumes or frequent payouts by eliminating redundant processes and ensuring up-to-date financial records.

Earlier this year, Tally Solutions introduced version 6.0 of its flagship software, TallyPrime, adding connected features aimed at SMBs. Founded in 1986, the company serves over seven million users across India, the Middle East, and Africa.

The new features integrate banking capabilities such as live balance checks, transaction updates, and automated reconciliation, alongside compliance tools like e-invoicing, e-way bill generation, and GST support. Traditionally confined to internal use, TallyPrime now enables businesses to connect directly with banks, reflecting the company’s push to simplify financial management and boost efficiency for SMBs.