Payout Status Remains "Processing" in Test Mode & does not change to processed in razorpay

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I've been integrating Razorpay's payouts API (https://api.razorpay.com/v1/payouts) into our system and conducting tests in the test environment. After initiating a payout successfully, I've noticed that the payout status is consistently marked as "Processing" and does not change to "Processed."

The request is successful, and the payout is created with a status of "Processing." However, even after waiting, the status does not update to "Processed." My questions are:

Is it expected behavior in the test environment for the payout status to remain "Processing" without changing to "Processed"?

Are there any steps I can take to simulate the status change to "Processed" for testing purposes?

Thank you for your assistance.

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