What is the Retirement Age in Banks in India?

What is the Retirement Age in Banking Sector?

Considering your retirement age is important to make a proper retirement plan if you are working in the banking sector. However, various types of banks in India set different ages to retire for their employees, starting from 58 years to 60 years. Some of the common types of banks and the retirement age they provide are as follows:

Types of Banks in India

Employees Retirement Age

Central Bank

60 years

Co-operative Banks

58 to 60 years

Commercial Banks

58 to 60 years

Regional Rural Banks

58 to 60 years

Local Area Banks

60 years

Specialised Banks

58 years

Small Finance Banks

58 to 60 years

Payment Banks

60 years

After getting an idea about the retirement age in banks, you should also know the benefits you will get here before and after retirement.

Retirement Benefits Given to Employees in Banking Sectors

Pre-Retirement Benefits in Banks

Post-Retirement Benefits in Banks

Year of Service

Rate of Gratuity Payment

below 1 year

2 times of basic pay

1 year or more (but below 5 years)

6 times of basic pay

5 years or more (but below 11 years)

12 times of basic pay

11 years or more (but below 20 years)

20 times of basic pay

20 years or more

Half of the payments are received after every 6 months of service (should not exceed 33 times of total payments)

Things to Consider While Planning Retirement as a Banking Sector Employee

FAQs about Retirement Age in Banks

Are both Government and private bank employees exempted from tax on receiving gratuity? up-arrow

 Only government bank employees are eligible to receive tax deductions on payment of gratuity after retirement. This has been stated under section 10(10) of the Income Tax Act 1961.

Is it possible to apply for late retirement as a bank employee? up-arrow

It is technically impossible to pursue late retirement or retirement after 60 if you are a bank employee. However, there are cases where you can work after retirement, although it depends on that particular bank.

Are there any specific criteria for the extension of the retirement age as a bank employee? up-arrow

Yes, the extension of the retirement age for bank employees is subject to conditions like good performance, medical fitness, and the requirement of the bank. However, in such cases the approval of the bank's board of directors is also necessary.