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‘Creamy Layer’ Income Cap Among OBCs Raised To Rs 8 Lakh Per Annum

No sub-categories under scheduled caste; ‘creamy layer’ ceiling raised for OBC category.



A silhouetted woman stands for a photograph while carrying her child. (Photographer: Dhiraj Singh/Bloomberg)
A silhouetted woman stands for a photograph while carrying her child. (Photographer: Dhiraj Singh/Bloomberg)

The Union Cabinet on Wednesday increased the ‘creamy layer’ ceiling for other backward classes (OBC) category to Rs 8 lakh per annum from the existing Rs 6 lakh for central government jobs, Finance Minister Arun Jaitley said on Wednesday.

Briefing reporters on the decisions taken by the Union Cabinet, he said those in the OBC category earning up to Rs 8 lakh per annum would now get reservation benefits.

Responding to a question, Jaitley said a proposal to extend the decision to public sector undertakings was under “active consideration” of the government.

No Relook At Reservation System

The government has also ruled out having a relook at the reservation system in the country and sub-categorisation of scheduled castes on the lines of OBCs.

RSS chief Mohan Bhagwat had in September, 2015 pitched for a review of the reservation policy, contending it has been used for political ends and suggested setting up of an apolitical committee to examine who needs the facility and for how long.

“Neither is there any proposal before the government, nor would there be a proposal (before it in the future),” Jaitley told a press conference on the Cabinet decisions. He was asked whether the government will review the reservation system as proposed by Bhagwat.

Jaitley gave a similar reply when asked whether the scheduled castes will be sub-categorised on the lines of OBCs.

The Union Cabinet on Wednesday approved setting up of a commission to examine sub-categorisation of OBCs which would help in equitable distribution of benefits among the communities.

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