She was 71 and survived by a son and a daughter.
Family sources said Banerjee was suffering from arthritis for quite some time. The end came suddenly around last midnight.
Banerjee, who cut her first disc in 1946, went on to become one of the most feted singing stars of the 1960s and the 1970s. She was a well known playback singer and made her debut in "Sunandar Biye" (Sunada's marriage) in the late 1940s soon after her marraige.
All India Radio's hit programme 'Anurodher Asar' played her songs regularly.