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Classification of Indian cities

City ranking system used in India From Wikipedia, the free encyclopedia

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The classification of Indian cities into tiers, population based ranking system as per the latest census has no centralised entity, instead it is done by at least 2 different used by the Government of India entities with different usage for the classification, Central Pay Commission (CPC) and Reserve Bank of India (RBI) - both of which are under India's Ministry of Finance. CPC classification of habitations in India, used to determine the allocation of higher House Rent Allowance (HRA) and other benefits like Transport Allowance for public servants, is also used by the Indian Revenue Service (IRS) to provide income tax exemptions.[1][2] RBI classification of habitations in India is used to formulate policies for bank branch expansion to promote financial inclusion, issue guidelines for lending, and provide a framework for economic analysis to study economic activity, growth potential, and credit needs.[3][4][5]

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CPC classification

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Current classification

This classification is based on the latest census, i.e. 2011 census of India.[6] Under the recommendation of the Seventh Central Pay Commission, the CCA classification was abolished in 2008. The earlier HRA classification of cities was changed from A-1 to X; A, B-1, and B-2 to Y; and C and unclassified cities to Z.[7][8][9] X, Y, and Z are more commonly known as Tier-1, Tier-2, and Tier-3 cities, respectively. There are eight X cities and ninety-seven Y cities.

On the basis of the 2011 census, two cities — Pune and Ahmedabad — were upgraded from Y to X and twenty one cities from Z to Y on 1 April 2014.[6][10][11]

Historical classification

This classification is no longer applied. Earlier the cities were classified as follows before the Sixth Central Pay Commission's recommendations were followed in 2008.[12] This classification was initially based on the recommendations of the Fifth Central Pay Commission of India in 1997.[12] New Delhi, Mumbai, Kolkata, and Chennai were classified as A-1 cities.[13] City statuses were later revised based on the results of the 2001 Census of India.[12] Hyderabad was upgraded from A to A-1 status on 31 August 2007, and the same with Bangalore on 21 September 2007.[13] The CCA classification was abolished in 2008.

Under the older HRA classification, most popular media and culture considered only A-1 cities to be metropolitan in nature, therefore India's "metros".

More information CCA classification, HRA classification ...
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RBI classification

The Reserve Bank of India (RBI) classifies centres into six tiers based on population.[15]

More information RBI Tier Classification, RBI Population (2001 Census) ...
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See also

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