The knock out level of the Ranji Trophy, 1960-61 saw the participation of a number of ten teams from the five zones. The top two teams of every zone got the chance to play the knock out matches of the Ranji Trophy, 1960-61 and to compete for the championship title. The teams like Bengal, Delhi, Bombay, Rajasthan and Madras were the most important teams in the knock out level and the teams tried hard to get the title.
In the Quarterfinal match of the Ranji Trophy, 1960-61, the teams of Bengal and Delhi clashed with each other at Calcutta from 21-24 January, 1961. Though the match was drawn during its stipulated duration, the match officials allowed the Delhi team to proceed to the Semi-Final stage of the tournament. The Delhi team played the first Semi-Final of the Ranji Trophy, 1960-61 against the Bombay team at Bombay from 24-26 February 1961. The Bombay team played extremely well in the match and defeated the Delhi team by a huge margin of an innings and 203 runs.
The second Semi-Final match of the Ranji Trophy, 1960-61 saw a clash between the teams of Rajasthan and Madras and the match was held at Madras from 25-28 February 1961. The Rajasthan team did well to win the match by a margin of 67 runs and to set up a clash with the Bombay team in the Final of the tournament. The Bombay and Rajasthan team locked their horns together in the Final of the Ranji Trophy, 1960-61 and the match was played at Udaipur from 08-10 March 1961. The Bombay team proved them to be the best once again and won the Final match by 7 wickets to become the champion for the third consecutive year.