A Group of Ministers have also recommended that the creamy layer be extended beyond the children of gazetted officers of the central government to children of Public Sector Utilities and university officials and teachers.
The Government announced on Wednesday setting up of a Commission to examine the issue of sub-categorisation of the Other Backward Classes (OBCs) in the Central list.
To examine the extent of inequitable distribution of benefits of reservation among the castes/ communities included in the broad category of OBCs, with reference to the OBCs included in the Central list.
OBCs are entitled to 27% reservation in government jobs and educational institutions, provided the annual income of the concerned family does not exceed the creamy layer criterion. It was increased to 2.5 lakh in 2004, 4.5 lakh in 2008 and then further to 6 lakh in 2013.
10 States including Andhra Pradesh, Telangana, Puducherry, Karnataka, Haryana, Jharkhand, West Bengal, Bihar, Maharashtra and Tamil Nadu have already carried out sub-categorization of Other Backward Classes.
After the cabinet meeting, Finance Minister Arun Jaitley told media that the new commission will submit a report within 12 weeks once the chairperson is appointed.
He said that Prime Minister Modi had recently hinted in Assam that the bar defining creamy layer would be raised and the procedure of formally informing the cabinet about the decision was completed today.
He was asked whether the government will review the reservation system as proposed by Bhagwat.
"Principal Spokesperson for the Government of India and Principal Director General of Press Information Bureau, Frank Noronha tweeted, "#CabinetDecision: "Commission to be set up to examine sub-categorization of OBCs", along with a picture.