NAAC was established in 1994 in response to recommendations of National Policy in Education (1986). This policy was to "address the issues of deterioration in quality of education", and the Plan of Action (POA-1992) laid out strategic plans for the policies including the establishment of an independent national accreditation body. Consequently, the NAAC was established in 1994 with its headquarters at Bangalore.
Accreditation from NAAC is a three part process consisting of the preparation and submission of a self-study report by the unit of assessment. Once completed and published an on-site visit of the peer team for validation of the self-study report is done with recommendations of the assessment. Lastly, the final decision is made by the Executive Committee of the NAAC.