General Banerjee served in the Indian Army for 36 years until his voluntary retirement in 1996. During his service he held many key command, staff and instructional appointments in India and attended the Staff College in Camberley, UK. His last active command in the army was as the Divisional Commander in Kashmir during 1991–1992. He has taught tactics and strategy at the Indian Military Academy, the College of Combat and the Defence Services Staff College in India. In recognition of his distinguished service to the Indian Army, General Banerjee received the prestigious military honour Ati Vishisht Seva Medal (Highly Distinguished Service Medal) from the President of India.