Union Cabinet approves equivalence of posts in PSUs, Banks, Insurance companies

Aug 31, 2017 16:10 IST

The Union Cabinet on 30 August 2017 approved the norms for establishing equivalence of posts in Government, Public Sector Undertakings (PSUs), Banks, Insurance Institutions for claiming benefit of OBC reservations.

This approval came after nearly 24 years.  This will ensure that the children of those serving in lower categories in PSUs and other institutions can get the benefit of OBC reservations.

It will prevent treatment of children of OBC category individuals in senior positions as non Creamy Layer by virtue of wrong interpretation of income standards.

The cabinet also approved the increase in the Creamy Layer ceiling of OBCs from Rs 6 lakh per annum to Rs 8 lakh per annum. This increase came with the increase in the Consumer Price Index.

The above measures form a part of the Union Government's efforts to ensure greater social justice and inclusion for members of the Other Backward Classes. These measures are expected to ensure greater representation of OBCs in educational institutions and jobs.

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Background:
In November 1992, the Supreme Court directed the Union Government to specify the basis for exclusion of socially and economically advanced persons from Other Backward Classes by applying certain socio-economic criteria.

In this regard, an Expert Committee was constituted in February 1993 which specified the criteria for identification of socially advanced persons among OBCs as the Creamy Layer. Following the recommendations of the committee, the DoPT issued an OM on exclusion of the Creamy Layer.

 The Office Memorandum (OM) specifies six categories for identifying Creamy Layer:
• Constitutional/Statutory post
• Group  ‘A’  and Group ‘B’ Officers of Government, employees of PSUs and Statutory bodies, universities
• Colonel and above in armed forces and equivalent in paramilitary forces
• Professionals like Doctors, Lawyers, Management Consultants, Engineers, etc.
• Property owners with agricultural holdings or vacant land or buildings
• Income tax assessee

The OM further stipulated that these parameters will apply to officers holding equivalent or comparable posts in PSUs, Banks, Insurance Organizations, Universities and Government to determine equivalence of positions.

However, this equivalence of posts in Government and posts in PSUs, PSBs had been pending for almost 24 years.

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