Reservation is a system of affirmative action in India that provides historically disadvantaged groups representation in education, employment, government schemes, health, insurance, banking, foreign higher education, scholarships and politics. Based on provisions in the Indian Constitution, it allows the Union Government and the States and Territories of India to set reserved quotas or seats, which lower the qualifications needed in exams, job openings, university admissions, scholarships, loan approval, promotions etc. for "socially and educationally backward citizens."