The Union Cabinet on Thursday gave its approval for increasing the “creamy layer” income criterion from Rs. 4.5 lakh to Rs. 6 lakh per annum throughout the country. Socially advanced persons and sections, known as the “creamy layer,” are barred from OBC reservation benefits.

According to officials, the income limit has been raised “in keeping with the increase in the consumer price index” and would “enable more persons to take advantage of the reservation benefits extended to the Other Backward Classes in government services and admission to central educational institutions”.

The Cabinet said the decision would bring about “equity and greater inclusiveness” in society.

Earlier, the limit was fixed in 2008, specifying that families with an annual income of Rs. 4.5 lakh and above could not be allowed the OBC benefits. As per a recommendation made by the OBC Commission, the ceiling was kept at Rs.12 lakh and Rs. 9 lakh for urban and rural areas respectively.

However, after concerns were expressed that this limit would reduce the number of people in the creamy layer, a Group of Ministers was appointed to resolve the issue.

More In: National | News