Existing income limit for OBCs Non-Creamy Layer is ‘sufficient’: Centre
Existing income limit for OBCs Non-Creamy Layer is ‘sufficient’: Centre

The existing income limit for determining the non-creamy layer (NCL) among Other Backward Classes (OBC) is considered sufficient and hence there is no proposal currently to revise the said income limit, informed the Centre.
What is Non-Creamy Layer in OBCs?
- Creamy Layer is a 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.
Basis of Creamy Layer
- It is based on the recommendation of the Second Backward Classes Commission (Mandal Commission).
- The government in 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 in the Indira Sawhney case (1992) upheld 27% reservation for OBCs, subject to exclusion of the creamy layer.
How is it determined?
- Following the order in Indra Sawhney, an expert committee headed by Justice (retired) R N Prasad was constituted for fixing the criteria for determining the creamy layer.
- In 1993, the Department of Personnel and Training (DoPT) listed out various categories of people of certain rank/status/income whose children cannot avail the 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.
- For instance, an individual is considered to fall within the creamy layer if either of his or her parents is in a constitutional post; if either parent has been directly recruited in Group-A; or if both parents are in Group-B services.
- If the parents enter Group-A through promotion before the age of 40, their children will be in the creamy layer.
- 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.
- Income from salaries or agricultural land is not clubbed while determining the creamy layer (2004).
What is happening now?
- Many communities have raised questions about the pending proposal for revising the criteria.
- They have asked whether the provision of a creamy layer for government services only for OBC candidates is rational and justified.
- The National Commission for Backward Classes (NCBC) has consistently maintained from as early as 2011 that the income limit should be raised to at least ₹10 lakh.
Has it ever been revised?
- Other than the income limit, the current definition of the creamy layer remains the same as the DoPT had spelled out in 1993 and 2004.
- The income limit has been revised over the years.
- No other orders for the definition of the creamy layer have been issued.
- While the DoPT had stipulated that it would be revised every three years, the first revision since 1993 (Rs 1 lakh per year) happened only in 2004 (Rs 2.50 lakh), 2008 (Rs 4.50 lakh), 2013 (Rs 6 lakh), and 2017 (Rs 8 lakh).
- It is now more than five years since the last revision.
What is the current NCL limit?
- Currently, an annual income of both parents of ₹8 lakh or more excludes OBCs from availing reservation.
- It puts them in the creamy layer category, leaving benefits only for those earning less than that.
What Has The Union Budget Allocated To Minorities?
- Recently,the government has slashed the Budgetary allocation of the Ministry of Minority Affairs for the 2023-24 fiscal by 38 per cent from the previous year.
- The Budget estimate has come down from Rs.5,020.50 crore in 2022-23 to Rs.3,097 crore.
- It must be mentioned that the revised allocation in 2022-23 was Rs.2,612.66 crore, indicating an under-utilisation of nearly 48 per cent.

Impacted Schemes
- The Education Scheme for Madrasas, which was adversely impacted by the general crunch, saw its budget drastically reduced by 93%, from 160 crores in the previous fiscal year to just 10 crores this year.
- The 160 crore allotment was a decrease from the 174 crores in the prior fiscal year.
- With initiatives for research as well as pre-matric scholarships witnessing a fund withdrawal or downsizing, the overall budget for minorities’ educational uplift was reduced to 1,689 crores from 2,515 crores the previous year.
- The budgetary allotment for research programmes for minorities, including as Muslims, Christians, Sikhs, Jains, Buddhists, and Parsis, was decreased by a little more than 50%, going from 41 crore last year to 20 crore this year.
- Similar to this, the government significantly reduced the money for pre-matric scholarships for minorities, dropping them from 1,425 crore last year to 433 crore in the upcoming fiscal year.
- The allocation for Pradhan Mantri Jan Vikas Karyakram (PMJYK) reduced from ₹1,650 crore to ₹600 crore this year. In places where minorities are concentrated, the program strives to offer basic amenities and socioeconomic infrastructure.
- It was allegedly a significant component of the government’s Sabka Saath, Sabka Vikas initiative.
- Pradhan Mantri Jan Vikas Karyakram (PMJVK) is a Scheme designed to address the development deficits of the identified Minority Concentration Areas. Prior to PMJVK, the Ministry implemented Multi-Sectoral Development Programme.
- The areas of implementation, under PMJVK, have been identified on the basis of minority population and socio-economic and basic amenities data of Census 2011 and will be known as Minority Concentration Areas.
- The latest Budgetary setback was the scrapping of the Maulana Azad National Fellowships for higher education.
- Meanwhile, this year’s budget for the Ministry of Minority Affairs includes a brand-new item called Prime Minister-Virasat ka samvardhan (PM Vikaas). Under the same, 540 crore has been allocated.
Why was Nai Udaan grounded?
- The Nai Udaan Scheme, designed to aid minority students in getting ready for the exams given by the Union Public Service Commission, was grounded.
- It was claimed that the programme duplicates other similar affirmative schemes of the government.
- For instance, the 2018 Budget reduces the funding for the Scheme for Leadership Development of Minority Women from 2.5 crore to 10 lakh.
- The Hamari Dharohar Scheme, which once received 2 crore for the preservation of minorities’ culture and traditions, currently only receives 10 lakh. The Minorities’ Skill Development Initiative suffered the most.
- It was given 235 crore rupees in 2022–2023 but is presently only getting 10 lakh. From an initial 46 crore, the finances for Nai Manzil, an integrated educational and livelihood scheme, were reduced to just 10 lakh.
- The funding allotted for the Upgrading the Skills and Training in Traditional Arts/Crafts for Development scheme (USTTAD) was reduced from 47 crore in 2022–2023 to just 10 lakh.
- Additionally, the Padho Pardesh Scheme‘s financial assistance for minorities to pursue higher education abroad was discontinued.
Impact
- The move to reduce funding for minorities’ socioeconomic and educational advancement has drawn widespread criticism.
- Numerous students from economically disadvantaged families protested the decision to eliminate different scholarships and the subsequent large reduction in budgetary expenditure for minorities.
- The fund crunch is likely to impact spheres of madrasas besides general school education, higher research, and local development in areas of minority concentration.
Pradhan Mantri Virasat Ka Samvardhan (PM VIKAS) Scheme
- Pradhan Mantri Virasat Ka Samvardhan (PM VIKAS) Scheme is an integrated scheme converges five erstwhile schemes of the Ministry viz. Seekho aur Kamao, USTTAD, Hamari Dharohar, Nai Roshni and Nai Manzil.
- The scheme has been approved by the Cabinet for the period of 15th Finance Commission.
- PM VIKAS aims to improve the livelihoods of the minorities, particularly the artisan communities, using the components of skill development, education, women leadership & entrepreneurship.
- These components complement each other in the ultimate objective of the scheme to increase the incomes of the beneficiaries and provide support by facilitating credit and market linkages.
What are White Label ATMs?

The Reserve Bank of India (RBI) has extended the validity of authorization issued to Vakrangee to setup, own and operate White Label ATMs in India.
What is White Label ATM?
- Usually ATMs are managed by banks. But White Label ATMs are owned and operated by non-banking entities.
- ATMs operated under this business model allow customers to use them for banking transactions regardless of the bank they have an account with.
- RBI approved the operation and inclusion of WLA ATM by non-banking organisations under the Payment and Settlement Systems Act of 2007.
- It was introduced to expand India’s ATM network, especially in semi-urban and rural areas.
How does it work?
- White Label ATM companies work with banking networks to enable bank customers to use banking services like withdrawing funds, paying bills and depositing cash.
- White Label ATM (WLA) operators’ charge card-issuing bank fees to provide this facility to the bank’s clients.
- The transaction process in White Label ATM operators consists of a lending bank, a sponsor bank that handles settlements and an ATM network provider.
- The Sponsor bank provides the cash facility for the White ATM.
Significance of WLA: Financial Inclusion
- Financial inclusion is concerned with the availability of financial services and adequate financing to low-income individuals and other vulnerable segments of society.
- ATMs promote financial inclusion and provide customers with various banking services at any location and time.
White Label ATM Operators in India
- Non-banks set up and operate White ATMs as per the rules laid down by RBI for using ‘other bank’ ATMs.
- These ATMs accept all domestic debit cards and offer the first five or three transactions per month free of cost, depending on the location.
- Below mentioned are some examples of companies that operate white label ATMs:
- Indicash – India’s largest White Label ATM network responsible for ‘uberisation of ATMs.’
- India1 Payments (BTI Payments Pvt. Ltd.)
- Hitachi Payment Services Pvt. Ltd.
- Tata Communications Payment Solutions Ltd.
- Vakrangee Limited
Benefits of White Label ATMs
There are many benefits of White Label ATMs:
- Customers benefit from White Label ATMs since they eliminate the need to visit a bank branch on a regular basis
- ATMs are available 24 hours a day, seven days a week, including holidays
- Banks benefit from this because they do not have to maintain a huge staff/office (compared to a system without ATMs). It lowers their branch-operational costs
- Financial inclusion of rural, semi-urban, and low-income people
- It allowed ATM cards to be issued by any bank that can be used at White Label ATMs
- WLA atm also provides mobile recharge, energy bill payments, and other value-added services
Limitations of White Label ATMs
There are also a few limitations of White Label ATMs:
- The issue of unsuccessful transactions is a key source of concern. In the event of a dispute, the dispute resolution method will include three entities, namely the WLA operator, the WLA operator’s sponsor bank, and the customer’s bank.
- Customers will be discouraged by the cost issue, as they will be obliged to pay a price to use the White Label ATMs, as only a limited number of free transactions are permitted on the WLAs
- White label ATMs’ financial viability is questioned because of their low interchange charge and hefty operational expenses
- If there is a bank-managed ATM in the same area as a WLA ATM, the White Label ATMs may not be able to generate a profit
Differences Between Brown Label and White Label ATMs
The differences between Brown Label ATM and White Label ATMs are:
Brown Label ATM | White Label ATM |
Brown Label ATMs have their hardware and ATM machine leased by a service provider | Non-banking entities own and operate ATMs |
The sponsor bank’s brand name appears on the Brown label ATM | There is no bank logo on a white label ATM machine |
The RBI is not directly involved. These outsourcing firms are bound by contracts with their respective banks | The RBI is directly involved as white label companies must obtain a license or permission from the RBI in order to conduct business |
Muons
Recently researchers are examining the fortress wall of Xi’an, an ancient city in China, by using tiny outer space particles called Muons that can penetrate hundreds of meters of stone surfaces.
- These particles have helped them find small density anomalies, which are potential safety hazards, inside the wall.

- Muons are subatomic particles raining from space.
- They are created when the particles in Earth’s atmosphere collide with cosmic rays.
- These particles resemble electrons but are 207 times as massive.
- Therefore, they are sometimes called “fat electrons”.
- Because muons are so heavy, they can travel through hundreds of meters of rock or other matter before getting absorbed or decaying into electrons and neutrinos.
- In comparison, electrons can penetrate through only a few centimeters.
- Muons are highly unstable and exist for just 2.2 microseconds.
Muography – Applications
- It is conceptually similar to X-ray but capable of scanning much larger and wider structures, owing to the penetration power of muons.
- Apart from archaeology, Muography has found use in customs security, internal imaging of volcanoes and others.
- Around 2015, scientists used the technique to look inside the Fukushima nuclear reactors after the 2011 earthquake and tsunami in Japan.
K.G. Balakrishnan Commission
Recently, the Ministry of Social Justice and Empowerment stated that the government is fully committed to providing all the facilities to enable the Balakrishnan Commission to function effectively.
About K.G. Balakrishnan Commission
- The Union government has notified a Commission in 2022 under the former Chief Justice of India and former chairperson of the National Human Rights Commission (NHRC) K G Balakrishnan .
- The three-member Commission will also comprise retired IAS officer Dr. Ravindra Kumar Jain and University Grants Commission member Prof Sushma Yadav.
- It will submit its report within two years.
Purpose
- To examine the issue of whether Scheduled Caste (SC) status can be accorded to Dalits who have over the years converted to religions other than Sikhism or Buddhism.
- The commission’s inquiry will also look into the changes an SC person goes through after converting to another religion and its implications on the question of including them as SCs.
- These will include examining their traditions, customs, social and other forms of discrimination, and how and whether they have changed as a result of the conversion.
- The commission has also been empowered to examine any other related questions that it deemed appropriate, in consultation with and with the consent of the Central government.
Present Status
- Currently, the Constitution (Scheduled Castes) Order, 1950 provides for only those belonging to Hindu, Sikh, or Buddhist communities to be categorised as SCs.
- When enacted, the Order only allowed for Hindu communities to be classified as SCs based on the social disabilities and discrimination they faced due to untouchability.
- It was amended in 1956 to include Sikh communities and again in 1990 to include Buddhist communities as SCs.
Other Efforts have been made to include Muslims and Christians of Dalit origin among SCs
- After 1990, a number of Private Member Bills were brought in Parliament for this purpose.
- In 1996, a government Bill called The Constitution (Scheduled Castes) Orders (Amendment) Bill was drafted, but in view of a divergence of opinions, the Bill was not introduced in Parliament.
- The UPA government headed by Prime Minister Manmohan Singh set up two important panels:
- the National Commission for Religious and Linguistic Minorities, popularly known as the Ranganath Misra Commission, in October 2004
- It submitted its report in 2007, recommended that SC status should be “completely de-linked from religion and Scheduled Castes [should be made] fully religion-neutral like Scheduled Tribes.
- a seven-member high-level committee headed by former Chief Justice of Delhi High Court Rajinder Sachar to study the social, economic, and educational condition of Muslims in March 2005.
- The Sachar Commission Report observed that the social and economic situation of Dalit Muslims and Dalit Christians did not improve after conversion.
- the National Commission for Religious and Linguistic Minorities, popularly known as the Ranganath Misra Commission, in October 2004
- The National Commission for Scheduled Castes and the National Commission for Minorities had also recommended providing SC status to Dalit Muslims and Dalit Christians in affidavits filed before the Supreme Court in 2011.
Future Outlook
- This is a seminal and historically complex sociological and constitutional question, and a definite matter of public importance given its importance, sensitivity, and potential impact, any change in definition in this regard should be on the basis of a detailed and definitive study and extensive consultation with all stakeholders and no commission under the Commissions of Inquiry Act, 1952 (60 of 1952) has so far inquired into the matter.”