Credit Transfer System: How the New Guidelines for Academic Credit Collection and Transfer Domestically and Abroad Will Benefit Students
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The University Grants Commission (UGC) has recently published guidelines for the collection and transfer of academic credits earned through study both inside and outside the country. Experts have stated that these guidelines will be beneficial for students and colleges across Nepal.
Previously, universities managed credit transfers in their own ways, but formal regulation through official guidelines is expected to streamline and improve the system.
Given that millions of Nepali students are enrolled abroad and that numerous universities are spread all over Nepal, this new system is anticipated to provide convenience to students and their families.
By quantifying coursework completed under certain conditions as academic ‘credit’ and allowing transfer from one institution to another, students starting studies abroad can continue and complete their education seamlessly back home, which is believed to be of great help.
What Is an Academic Credit Bank?
The University Grants Commission, the body responsible for resource management of 15 federal and 7 provincial universities in Nepal, issued the “Academic Credit Bank Establishment and Operation Guidelines 2082” and made it available from Shrawan 18 (early August), 2025.
The guidelines state that the Commission issued this to facilitate the collection and transfer of credits earned both domestically and internationally by students pursuing higher education, thereby promoting student mobility and academic continuity.
According to the guidelines, “a credit refers to the unit of academic assessment a student achieves after approximately 15-16 hours of learning activity.”
The guidelines indicate that the Commission will establish an academic credit bank on a digital platform, providing services such as credit verification, storage, and transfer.
Students who earn credits abroad can store them in the credit bank and transfer or utilize them as needed, as per the guidelines.
To use the credit bank, students will need to open an account by submitting personal information, educational certificates, and documents showing credits earned from accredited higher education institutions.
“These credit transfer systems have been in place in developed countries for decades. However, even within Tribhuvan University, transferring a student from Jumla to Kathmandu was previously impossible. Transfers were only possible from government to other colleges, but not into government colleges,” said Professor Khadga Bahadur KC, Chairman of the University Grants Commission.
Benefits for Students
Professor KC, a former Dean of Tribhuvan University, expressed confidence that credit transfer will ease processes for both students and higher education institutions.
“With credit transfer in place, a student studying in Surkhet will find it easier to continue studies in Kirtipur, or a student at one university can transfer smoothly to another university,” he said.
Professor Ramesh Prasad Joshi, President of the Nepal Professors Association, also regarded this as an appropriate initiative.
“Currently, students are enrolled in various universities throughout the country, and many students have gone abroad. Many parents go abroad for work and want their children to study there. Now, returning and continuing education here will be easier,” Professor Joshi explained.
“Previously, such systems did not exist. This is a new arrangement where students will have a formal process to transfer credits.”
Professor Joshi described that three credits roughly equal one semester or 45 periods. “Earlier, only class hours were counted, but now the credit system is operational. If a student accumulates the required credits, they can complete their studies easily; otherwise, additional courses or semesters may be needed,” he clarified.
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Before issuing the guidelines, various universities managed credit transfer independently.
Professor Achyut Wagle, former Vice-Chancellor of Kathmandu University, shared his experience in this regard.
“Previously, we had arrangements to recognize up to 50% of credits earned from other universities. Now, the guidelines allow permission to transfer up to 100%, provided the curriculum and credit hours match,” said Professor Wagle.
He emphasized that flexible learning environments are essential in today’s context and that the credit transfer system will prove useful.
“Globally, the tradition of studying continuously in college for four, five, or eight years is decreasing. Systems of accumulating fewer credits gradually and recognizing them are expanding, and this is necessary,” Professor Wagle explained.
University Grants Commission officials confirmed that digital software and a mobile app are being developed to set up the credit bank and enable students to open accounts as per the guidelines.
“Once these arrangements are complete, students will be able to deposit their earned credits into the credit bank, similar to depositing money in a financial bank,” said Assistant Director Sitaram Bhattarai of the UGC.
For credit transfer, both the university where the credit was earned and the one to which the credit is being transferred must recognize the credits.
How Many Nepali Students Are Studying Abroad?
Currently, about three-quarters of students enrolled in higher education within Nepal attend Tribhuvan University, which has around 500,000 students enrolled in higher education programs.
A significant number of Nepali students are also pursuing higher education abroad.
Statistics from the Ministry of Education show that nearly 114,000 students received ‘No Objection’ or foreign study approval letters in fiscal year 2082/83 (2025/26).
Japan, Australia, and the UK are among the top destination countries for Nepali students studying abroad.
According to the latest figures from the Department of Immigration, in 2025, about 133,000 Nepalis went abroad for study, out of a total of over 1.7 million Nepalis who traveled abroad that year.
Department data shows that approximately 490,000 Nepalis went abroad for study in 2021 alone.
