New Delhi: In a major decision, the Modi government on Wednesday approved setting up of a Commission to examine the Sub-Categorization within OBCs and also decided to increase the creamy layer limit to Rs 8 lakh from the current Rs 6 lakh annual salary.
Finance Minister Arun Jaitley while informing about the cabinet decision said that a Commission will be formed to examine the matter of sub-categorisation of OBC for the purposes of the central government employment.
The Commission has been given a time of 12 weeks from the date of appointment of the Chairperson of the Commission to submit its report.
The National Commission for Backward Classes (NCBC), now defunct, had recommended sub-categorisation within OBCs into Extremely Backward Classes (Group 'A'), More Backward Classes (Group 'B') and Backward Classes (Group 'C') to distinguish between extremely backward classes and 'forward' groups among the OBCs.
With the increase in creamy layer, those who belong to OBC category and earns less than Rs 8 lakh or less would get the benefit of reservation in central government jobs.
Those earning an annual salary of more than Rs 8 lakh will now come under the creamy layer and won’t get the benefit of OBC reservation.
The Cabinet note was sent by the social justice ministry. It was lying with the government for nearly one year.
In 1993, creamy layer limit was fixed at Rs 1 lakh. It was increased to Rs 2.5 lakh in 2004, Rs 4.5 lakh in 2008 and Rs 6 lakh in 2013.
In 2015, the NCBC had recommended the creamy layer limit to Rs 15 lakh.
Nine States of the country i.e. Andhra Pradesh, Telangana, Puducherry, Karnataka, Haryana, Jharkhand, West Bengal, Bihar, Maharashtra and Tamil Nadu have already carried out sub-categorization of Other Backward Classes.