NEW DELHI (Reuters) -- A member of India's lowest Hindu caste will become chief justice of its powerful Supreme Court for the first time, officials said on Saturday, but his community still faces widespread discrimination.

Justice K.G. Balakrishnan, 61, will take over on Jan. 14 when the incumbent, Y. K. Sabharwal, retires.

Balakrishnan's selection to one of the most powerful posts in India was approved by President A.P.J Abdul Kalam this week.

"The president assented to this on Thursday. It was forwarded to the Law Ministry on Friday," an official said.

Balakrishnan is a member of India's Dalit community -- formerly known as "untouchables" and the lowest group in Hinduism's caste system.

He is from the communist-ruled southern state of Kerala, which has India's highest literacy rate and some of the country's best social indicators including for Dalits.

Dalits, who make up about 16 percent of India's 1.1-billion population, still face intense prejudice and even violence in many rural areas and small towns.

In many areas, they are still not allowed to enter temples or even sit next to upper caste Hindus.

But a small section of Dalits have benefited from affirmative action for them in colleges, universities and in government jobs.

India's first Dalit president, K.R. Narayanan, held office from 1997 until 2002.

Balakrishnan said his initial focus would be on ensuring honest people enter the judiciary.

"We have to carefully scrutinize the antecedents of judicial officers and block the way (of corrupt people) right at the entry level," he was quoted as saying in The Times of India.