Union Cabinet has approved setting up of a Commission to examine sub-categorization of OBCs. <br/><br/>Briefing media in New Delhi today, Finance Minister Arun Jaitley said, the decision is based on the recommendation of National Commission for Backward Classes (NCBC). <br/><br/>Mr Jaitley said, Parliamentary Standing Committee had also made similar recommendations. The sub-categorization will apply for reservation in Central government jobs.<br/><br/>The Commission will be mandated to examine the extent of inequitable distribution of benefits of reservation among castes and communities included in the central list of OBC. <br/><br/>As per proposed terms of reference, it will also work out a mechanism, criteria, norms and parameters through a scientific approach for sub-categorization.<br/><br/>The Commission will take up the exercise of identifying the respective castes, sub-castes, communities and synonyms in the Central list of OBCs and classifying them into their respective sub-categories. The Commission will submit its report within 12 weeks from the date of appointment of Chairperson.<br/><br/>In an another decision, the Cabinet has increased the creamy layer ceiling for the Other Backward Classes (OBC) category to eight lakh rupees per annum from the existing six lakh for central government jobs. Finance Minister Arun Jaitley told media that a proposal to extend the decision to public sector undertakings is under active consideration of the government.