The present day examination system is characterized by memorization in the baneful effects of the phenomenon. The existing examination system is more or less a test of rote memory with little emphasis on understanding and application. // To minimize the undue emphasis on rote memorisation, there is a need to shift towards competency based testing. Appropriate reforms in the examination system have been emphasised by various committees and commissions appointed by the Government of India during the pre and post-independence period. The National Policy on Education (1986) states; “ A major goal of examination reform should be to improve the reliability and validity of examinations and to make evaluation a continuous process aimed at helping the student to improve his/her level of achievement rather than certifying the quality of his/her performance at a given point of time.” // However, even today, testing of higher thinking abilities – understanding, application, analysis, synthesis and judgment – is not being focused upon in the measure called for. // The Open Learning system is based on the needs of individual learner. Open learning enables the learner to control what, where, when and how to learn. Here, the focus is on the learner and the learning process. The flexibility in the examination system also helps a learner to pursue learning at his/her own pace of learning. This in fact is a key foundation behind the success of all distance and open learning programmes. // The National Institute of Open Schooling (NIOS), India is the largest Open School in the world in terms of enrolment, courses of study and the geographical areas of its operation. The cumulative enrolment during the last five years is about 1.5 million in Secondary, Senior Secondary and Vocational Education. NIOS has been vested with the authority of enrolling and certifying students up to pre-degree level. // Paper ID 552