Academic Bank of Credit: All You Need to Know

academic bank of credit

The Academic Bank of Credit (ABC), is an initiative under the National Education Policy (NEP 2020) by the University Grants Commission (UGC). It is a virtual/digital storehouse that holds the information of credits earned by individual students throughout their education. A student can open their account and give their college or university the authority to refer their records when needed. It is an authentic reference to check the credit record of any student when they apply for higher education.

The Academic Bank of Credit is expected to boost faculty efficiency and allow students to embrace a multi-disciplinary approach to learning.


What are the Functions of the Academic Bank of Credit?

  • Maintaining Student Accounts: The ABC is responsible for opening, closing, and validating the academic accounts of students.
  • Managing Student Credit Records: Any credits earned by the student should be entered into their ABC account. The ABC is responsible for credit accumulation, credit verification, credit transfer, and redemption of students.
  • All Courses Covered: The Academic Bank of Credits covers on-campus courses, online courses, and distance learning courses offered by government and private institutions.
  • Credit Validity: Any credits deposited in the ABC are valid for seven years. The students may redeem these credits whenever required.
  • Admissions in Mid-Course: When a student redeems their credits, they can apply for admission in any year of graduation at any university whenever they want to continue graduation.


Significance of the Academic Bank of Credit

  • The ABC is a system of education that enlarges the scope of students’ academic choices. It gives them the freedom to pursue a multi-disciplinary approach to graduation.
  • Students can drop out of their institute from any year or any semester and exchange the credits earned so far with a certificate or diploma if they are eligible for it.
  • Students may redeem their credits and re-join the same institute or another institute to complete their education whenever they want.
  • It will enable students to save time from waste if they decide to drop off the course or institute.
  • It will prevent coercive practices by some institutions to keep students enrolled against their will to earn money.


How Does the Academic Bank of Credit Work?

To understand the significance and utility of the Academic Bank of Credit, it is essential to understand the working of ABC in detail. Here are some guidelines laid down by the NEP for the functioning of the Academic Bank of Credit –

  1. Opening the Bank Account
    Students can open an account in the Academic Bank of Credits by providing their name, address, certification, course details, etc. Once the account is created, students can log in using their unique ID and password to check their earned credits.
  2. Organized Credit Information
    The government will create a credit structure based on the courses. As soon as a student clears an exam, credits will be awarded to them and added to their account by their institute.
  3. Types of Courses
    The academic credit bank will cover all kinds of courses, including online, distance learning and on-campus courses.
  4. Evaluation of Credits
    Academic credit banks will conduct credit evaluation and verification from time to time. Students can transfer credit from one course to another or from one institution to another by coordinating with the Academic Bank of Credit.
  5. Credit’s Validity
    Credits earned once will be valid for seven years. The validity of credits may change subject to the courses or disciplines.

The academic credit bank is a unique initiative by the government of India to make the Indian education system more flexible. It allows for student mobility, improves the scope of academic pursuits, and makes the learning process more student-centric than ever before. The ABC attempts to reduce coercive practices by private educational institutions and create better transparency.

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