As per some of the sources the current credit transfer program across universities in India, is limited to the government colleges. There is no provision for the credit transfer for students on the private colleges.
However here are some things indian students can't do in credit transfer.
1. You can't have credits of different degree in your existing degree. That means as an engineer you can't have psychology subject with credits for it.
2. No fluid credit transfer for specific subject. Credits in india are considered per semester on the basis of year. Not on basis of subjects.
3. Not allowed to transfer the credits from private institution to government and vice versa. You can only transfer credit with specific institution. Also the process is rigid as of yet and not much easy to transfer from university to another.
You can read about this change here: http://www.universityworldnews.com/article.php?story=20101029223244666