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Saturday, September 2, 2017

New Policy On Reservation

30-August-2017 14:50 IST
Cabinet approves equivalence of posts in Central Public Sector Undertakings (PSUs), Banks, Insurance Institutions with Posts in Government so that the children of those serving in lower categories in PSUs and other institutions can get the benefit of OBC reservations
The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval to the norms for establishing equivalence of posts in Government and posts in PSUs, PSBs etc. for claiming benefit of OBC reservations. This addresses an issue pending for 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, on par with children of people serving in lower categories in Government. This will also prevent children of those in senior positions in such institutions, who, owing to absence of equivalence of posts, may have been treated as non Creamy Layer by virtue of wrong interpretation of income standards from cornering government posts reserved for OBCs and denying the genuine non creamy layer candidates a level playing field.

The Union Cabinet also approved the increase in the present income criterion of Rs. 6 lakh per annum for applying the Creamy Layer restriction throughout the country, for excluding Socially Advanced Persons/Sections (Creamy Layer) from the purview of reservation of Other Backward Classes (OBCs). The new income criterion will be Rs. 8 lakh per annum. The increase in the income limit to exclude the Creamy Layer is in keeping with the increase in the Consumer Price Index and will enable more persons to take advantage of reservation benefits extended to OBCs in government services and admission to central educational institutions.

These measures are a part of the Government's efforts to ensure greater social justice and inclusion for members of the Other Backward Classes. The Government has already introduced in Parliament, a bill to provide Constitutional status to the National Commission for Backward Classes. It has also decided to set up a Commission, under section 340 of the Constitution, to sub categorize the OBCs, so that the more backward among the OBC communities can also access the benefits of reservation for educational institutions and government jobs. All these decisions, taken together, are expected to ensure greater representation of OBCs in educational institutions and jobs, while also ensuring that the more under-privileged within the category are not denied their chance of social mobility.


In its judgment dated 16.11.1992 in WP(C) 930/1990 (IndraSawhney case) the Supreme Court had directed the Government to specify the basis, for exclusion of socially and economically advanced persons from Other Backward Classes by applying the relevant and requisite socio-economic criteria.

An Expert Committee was constituted in February 1993 which submitted its report on 10.03.1993 specifying the criteria for identification of socially advanced persons among OBCs i.e. the Creamy Layer. The report was accepted by the then Ministry of Welfare and forwarded to DoPT which issued an OM dated 08.09.1993 on exclusion from the Creamy Layer.

The OM of 08.09.1993 specifies six categories for identifying Creamy Layer (a) Constitutional/Statutory post (b) Group  ‘A’  and Group ‘B’ Officers of Central and State Governments, employees of PSUs and Statutory bodies, universities, (c) Colonel and above in armed forces and equivalent in paramilitary  forces (d) professionals like Doctors, Lawyers, Management Consultants, Engineers etc. (e) Property owners with agricultural holdings or vacant land and/or buildings  and (f) income/wealth tax asessee.

The OM further stipulates that the said parameters would apply mutatis mutandis to officers holding equivalent or comparable posts in PSUs, Banks, Insurance Organizations, Universities, etc. and Government was required to determine equivalence of positions in these organizations with those in Government.

Pending the equivalence to the established in these institutions Income criteria would apply for the officers in these Institutions.

However, this exercise of determining the equivalence of posts in Government and posts in PSUs, PSBs etc. had not been initiated. The determination of equivalence of posts has been thus pending for almost 24 years.

The matter of formulating equivalence has since been examined in detail. 

In PSUs, all Executive level posts i.e. Board level executives and managerial level posts would be treated as equivalent to group 'A' posts in Government and will be considered Creamy Layer. Junior Management Grade Scale–1 and above of  Public Sector Banks, Financial Institutions and Public Sector Insurance Corporations will be treated as equivalent to Group 'A' in the Government of India and considered as Creamy Layer. For Clerks and Peons in PSBs, FIs and PSICs, the Income Test as revised from time to time will be applicable. These are the broad guidelines and each individual Bank, PSU, Insurance Company would place the matter before their respective board to identify individual posts.

Times of India publishes the 

news in following way.

The government has approved a proposal to identify posts in PSUs and financial institutions for the "creamy layer" category to exclude them from 27% OBC reservations.
In what would end a 24-year-long process hanging fire since Mandal reservations came into existence in 1993, the Cabinet on Wednesday cleared the criteria for marking out Group A and Group B positions in PSUs, banks and financial institutions.
Those holding Group A and Group B jobs in government services are deemed to belong to the creamy layer and accordingly their children are barred from availing jobs and admissions in educational institutions under the OBC quota.
The prohibition will now be extended to wards of holders of the posts in PSUs, banks and financial institutions. The "creamy layer" also lays down annual salary criteria to decide eligibility for quota.
Salary cap for using quotas raised
On Wednesday, the Union Cabinet also raised the salary ceiling for availing quotas from Rs 6 lakh to Rs 8 lakh. While there has been a clear delineation of posts in the government which fall under "creamy layer", the comparable posts in PSUs were never identified, leading to confusion in cases of wards of OBC individuals employed in state undertakings.

Now The question which comes in the mind of common bankers is as follows:-

It follows from above policy changes announced by the government that the Pay Scales of Bank Officers in JMGS I must be aligned with the pay scales of Group A Officers in Government of India, as per 7th CPC.

             Will they do?

My opinion is as follows:-

Government will do provided bank unions agree to accept pay commission fully.

Bipartite settlement was beneficial upto seventies and eighties when bank staff used to get salary much more than even government officers and clerical staff. But gradually pay of bank staff has faced severe erosion and no the position of pay of bankers is pitiable . 

However bank management has resorted to new tacts to give higher salary to staff by promoting them promotion in smaller period. Now a bank officer can become scale IV in a span of 10 years and become eligible to draw salary more than one lac whereas in the past a scale I officer could not get opportunity for promotion even for 10 to 15 years. 

In any way , bankers should now align themselves with central government employees to avail all benefits available as per pay commission. They should discard the system of Bipartite Settlement and  get rid of left minded trade unions who have during the course of time become totally indifferent to welfare of bank staff. In this way bank staff will not require to face wage cut for frequent bank strike to build pressure on government for respectable wage hike.

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