No quota for creamy layer OBCs in PSUs, says Cabinet

The Union Cabinet on Wednesday decided to extend the creamy layer criteria to Other Backward Classes (OBC) reservations in public sector undertakings (PSU) and financial institutions.

The government had in 1993 decided to exclude creamy layer within OBCs from reservation benefits on the basis of income and status. But the exclusion did not apply to PSUs and financial institutions like banks and insurance companies.

The Cabinet had last week decided that OBC families earning up to Rs 8 lakh a year would be considered in the creamy layer. Earlier, this ceiling was Rs 6 lakh per annum.

Talking about the decision, Finance Minister Arun Jaitley said the issue was caught up in government files for the past 24 years. “Now the same limit of Rs 8 lakh, which is applicable on central government, will also be applicable on PSUs and financial institutions,” he said. “With regards to status, candidates whose parents hold constitutional posts or Group A and B posts are excluded,” he said.

The minister said that with these decisions, benefits will spread more widely across the OBC community. “This will ensure that the children of those serving in lower categories in PSUs and other institutions can get the benefit of OBC reservations, on a par with children of people serving in lower categories in government,” a statement said.