Suppose I have 2 Cr in bank at age 55. I am close to retiring. Will this be enough to generate an income to last for the next 20-25 years. Also is there a way I can grow this capital and simultaneously get a monthly income?

It depends on your current financials. If all below states true for you:

1. Divide the full amount in two parts- one in your name and another in your better half name. Result - Tax liability will be Zero.
2. 25% FD can be made in Bajaj Finance, Tata Finance & L& T Finance i e 4 lacs in each by both of you. It will give safe and better return.
3. One caror in mutual fund - A. To be divided in two part ie Fifty lacs each to be handled by you and your better half.
4. these fifty laces to be again divided in four parts and to be invested in Canara, SBI, Kotak and ICICI Mutual fund houses in direct mode and fund as suggested.

• You don't have any ongoing loan.
• Have your own house.
• No other financial dependents other than your spouse.
• Have health insurance or no big medical condition.

If these conditions hold true for you, then you can retire with 2 crore rupees.

You can create an annual FD for 1 crore rupees. As of today, HDFC is giving 5.5% return on one year fixed deposit.

That means post tax you'll fetch 5.5 lakh rupees which equates to 45,833 rupees monthly. It will draw a small tax since you would already be retired and this will all be your taxable income.

Other one crore you can invest in any passive Index fund (direct growth plan). Try not to touch this for at least next 7–8 years. By that time, this one crore will become almost 2 crore.

Take out 1 crore and make additional FD to incorporate your inflation adjusted expenses. Repeat this process after almost every 7–8 years. This way your corpus will last forever.

Definitely, there will be a risk factor associated, but this is the best we could do with the given amount. Also, you can invest in Senior Citizen Saving scheme of RBI once you reaches 60 years of age as that gives 7.4% interest.

All the best!