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Academic Bank of Credit

  • IAS NEXT, Lucknow
  • 24, Feb 2022
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The Academic Bank of Credits (ABC) is expected to be implemented from this academic year.

  • However, this scheme has many pros and cons and there are issues which still need to be addressed before it gets implemented.

Concerns and challenges associated:

  • ABC will affect organised, systematic learning: Students may find it difficult to change colleges from different universities.
  • The university or the college a student studies in also makes a difference in terms of the name and quality of education provided.
  • Impact on remote institutions: Only the National Assessment and Accreditation Council (NAAC) graded institutions can join the Academic Bank of Credit. It may push the already remote institutions to become more marginalized.
  • There can be conflict of interests between different states governed by different political parties in restructuring their policies to enable ABC.
  • Providing additional seats to students under ABC in premier institutes which already have high demand would incur additional costs for institutions.

What is the Academic Bank of Credit (ABC)?

Academic Bank of Credit (ABC), proposed under the National Education Policy (NEP) 2020, was unveiled in July 2021.

Set-up by the University Grants Commission (UGC).

  • Under the ABC, students will be given multiple entry and exit options.
  • This enables students to leave a degree or course and get a corresponding certification and rejoin studies after a certain time and be able to start from where they had left.
  • It will also provide students with the flexibility to move between institutes while pursuing one degree or leave a course.

How does it work?

ABC will keep records of the academic credits of a student. It will not accept any credit course document directly from the students for any course they might be pursuing, but only from higher education institutes, who will have to make deposits in students’ accounts.


ABC will help in credit verification, credit accumulation, credit transfer and redemption of students, and promotion of the students.

In simple terms:

Under the ABC, a student can earn a degree from any HEI, with multiple entry and exit options. Instead of spending three years in one college, a student can seamlessly switch over from one college to another one. In order to earn a degree, a student will now require to hold a certain number of credits under his or her account.

  • For example, if a BCom student studies in one college, he or she can change college after one year. He or she can join the same course after a break.
  • Until then, the credits the student earned in that one year will be maintained in their ABC account and it can be used when the student rejoins the same course in any other college.