Upon critical analysis and exploratory research it is observed that there is a significant difference between the Absolute Grading system and the Relative Grading system being introduced recently in autonomous engineering institutions. It is found that Relative Grading implemented in its present form using some software has resulted in significant reduction in the GPA of students. The reduction in Subject-wise GPA or Class-average GPA in a semester varies from 0.09 to 0.73 with an average loss of 0.42. So if similar differences are considered over a period of 8 semesters of Engineering degree, then the reduction in GPA/CGPA will range from 0.4 to 1.0, which is a huge loss to certain percentage of students. Especially, more number of average and below average students who used to score relatively lower range of marks are bound to receive relatively lower grades and hence they may end up with securing lower GPA/CGPA. Hence the authors, after thorough analysis and research, proposed a suitable Relative Grading system through normalization and computing ?±? limits for adopting suitable class intervals of marks to allot appropriate grades. This approach minimizes the difference between the relative grades received by students as compared to those received by following the Absolute Grading system. It is further observed that there is a strong linear relationship between Grade Point and Marks.