Classification of Indian Cities by Levels – Reason, Categorization and Other Details


Indian cities have been categorized as Tier 1, 2 and 3. The most developed are called Tier 1 cities and the least developed are called Tier 2 and Tier 3 cities. Details of the categories have been provided in the below. article below. Looked.

Who divides cities into categories and how:

India has been divided into several categories by the Remuneration commission. This is the current method of classification.

Prior to 2008, there were two categories that cities were classified into in India. This is called the historical classification and the cities were classified before the recommendations of the Sixth Pay Commission. In this category, the cities of Chennai, New Delhi, Kolkata and Mumbai were referred to as A1 cities. The statutes of the cities were then revised on the basis of the results of the 2001 India census.

Hyderabad was subsequently granted A1 city status in 2007 and Bangalore also in the same year. The CCA classification was however abolished in 2008.

The classification was removed as it was found that Category C towns had an A1 Pay commission which classified them as A1 towns that did not have amenities as such. Such anomalies paved the way for the current classification based on the 7th Compensation Commission. The old HRA for cities has been changed from A1 to X; A, B1 and B2 to Y and C and unclassified cities to Z.

Now, X, Y, and Z are referred to as Tier 1, Tier 2, and Tier 3 cities, respectively. There are eight X cities and 97 Y cities in India.

X cities: The salary that the government gives is divided into different categories. One of them is the rent allowance. In Category X of cities, the HRA is 24% of the base salary.

Cities of the Y: If the HRA of people serving in the government organization is 16% of their base salary, the city falls under category Y

Z cities: In the event that the HRA is 8% of the base salary, the city is referred to as a Category Z city.

S. No. Level 1 cities
1 Bangalore
2 Chennai
3 Delhi
4 Hyderabad
5 Calcutta
6 Bombay
7 Ahmedabad
8 Pune

Level classification:

Various classifications have been made in this category by various organizations. RBI classifies cities in level 1 to 6 categories based on their population.

According to the Reserve Bank of India, the following classification is followed:

Levels

Population

Level 1

1,000,000 and over

Level 2

50,000 to 99,999

Level 3

20,000 to 49,999

Level 4

10,000 to 19,999

Level 5

5000 to 9999

Level 6

less than 5000

Other classification: Rural, urban category

Another important classification is made on the basis of urban or rural areas.

Rural center: Less than 10,000 inhabitants is the reason why the place is classified as a rural center

Semi Urban Center: In this category, the population of the center must be between 10,000 and 1 lakh

Urban center : Population areas from 1 lakh to 10 lakh are included in the category of urban centers

Metropolitan center: It is the city where the population is over 1 million or 10 lakh. It should be a municipal corporation.

Reason for ranking:

The classification is useful because it helps the government to decide the salary of its employees based on it. Various government-offered programs can be planned effectively because of this categorization. In addition, the taxation also depends on the classification. So all in all, the classification of cities into different levels is quite necessary.

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