Understanding the OBC Non Creamy layer reservation policy

27% of the seats in Government institutes ( like the IIMs and IITs ) are reserved for those belonging to the OBC non creamy layer. In order belong to the OBC non creamy layer category, an aspirant should fulfil the following two conditions 

  • The candidate should hail from a community listed in the Central Government's list of OBCs. This can be checked by going through the Government of India's website at http://www.ncbc.nic.in/User
  • If the candidate's community is mentioned in the above list, then the second step for him / her is to check whether he / she belongs to the creamy layer or to the non creamy layer. Reservations are offered only to candidates belonging to the OBC non creamy layer.

OBC creamy layer vs OBC non creamy layer

In order to qualify as an OBC non creamy layer candidate, the applicant's parents' annual income should be less than Rs 8 lacs .”Income” here refers only to the income of the parents; the candidate's income is not considered.

History of OBC non creamy layer definition

The income limit, for the candidate to be eligible for OBC non creamy layer reservation, has been revised from time to time taking various economic factors into consideration.

The income limit was set at Rs 1 lakh p.a. in 1993. Thereafter, it was raised to Rs 2.5 lakhs p.a. in 2004. It was subsequently increased to Rs 4.5 lakhs p.a. in 2008 and then to Rs 6 lakhs p.a in 2013.

Candidates who fall under OBC creamy layer ( parents' annual income more than 8 lacs ) are treated as general category students ; they do not have any reservation at the Government institutions.


  • In PSUs, all executive level posts, board-level executives and managerial-level posts are treated as equivalent to group 'A' posts in the 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 and considered as OBC 'creamy layer'.
  • As per rules, group category A & B (Service Category), the son(s) and daughter(s) of Group A/Class I Officers and both the parents of Group B/Class II Officers only are excluded from availing the the benefit of reservation. All other Officers i.e. if only one of the parents is a Group B/Class II Officer and all the Officers below the Category II Officers are entitled to avail the rule of reservation unless their other income other than the salaries and agricultural land exceeds the income criteria limit prescribed.
  • As far as Group B/Class II Officers are concerned, if one of the parents of the children while working as Group B/Class II Officer gets into Group A/Class I Officer at the age of 40 or earlier, then also the children are not entitled to the benefit of reservation. But in case the Group B/Class II Officer gets into Group A/Class I Officer after the age of 40 years, the children are entitled to get the reservation.

Once the candidate has confirmed that he/she belongs to the OBC non creamy layer category, he/she needs to secure anofficial certificate for this. The following is a sample format of OBC non creamy layer certificate ( as per the official website of CAT )


The following are some of the good B-schools which offer reservation to OBC non creamy layer category applicants

  • IIMs
  • IITs
  • FMS Delhi
  • NITIE-Mumbai
  • IIFT
  • TISS Mumbai
  • FMS BHU Varanasi
  • IIFM Bhopal
  • Department of Financial Studies (DFS), University of Delhi, South Campus
  • Department of Commerce,University of Delhi,Delhi School of Economics
  • Department of Management Studies (DOMS), Indian Institute of Science Bangalore (IISc)

To know the T.I.M.E. B-school categorisation of these B-schools, please visit the following link