What is in news : The session of Lok Sabha discussed on revising creamy layer criterion for OBC

What is the creamy layer:

• Concept that sets a threshold within which OBC reservation benefits are applicable
• While there is a 27% quota for OBCs in government jobs and higher educational institutions, those falling within the “creamy layer” cannot get the benefits of this quota.
• Based on the recommendation of the Second Backward Classes Commission (Mandal Commission), the government on August 13, 1990 had notified 27% reservation for Socially and Educationally Backward Classes (SEBCs) in vacancies in civil posts and services that are to be filled on direct recruitment. After this was challenged, the Supreme Court on November 16, 1992 (Indira Sawhney case) upheld 27% reservation for OBCs, subject to exclusion of the creamy layer.

How is it determined :

• Expert committee headed by Justice (retired) R N Prasad was constituted for fixing the criteria for determining the creamy layer
• On September 8, 1993, the Department of Personnel and Training (DoPT) listed out various categories of people of certain rank/status/income whose children cannot avail benefit of OBC reservation.
• For those not in government, the current threshold is an income of Rs 8 lakh per year. For children of government employees, the threshold is based on their parents’ rank and not income
• Children of a Colonel or higher-ranked officer in the Army, and children of officers of similar ranks in the Navy and Air Force, too, come under the creamy layer.