VTU hasn’t canceled the year-back system. You will still get a year back if you get more than four backlogs in a year. But having backlogs previous to the previous year won’t result in a year-back. The rules are as follows.
So, you will still get a year-back, if you have more than four backlogs in an academic year.
VTU has never canceled the year back and has no plans for canceling it in the future. It is just providing students a second chance to attempt their backlogs.
If they clear the subject, they will go as per regular students' curriculum. If not, they have to wait for next year. Yes, this scheme is now available for CBCS students also.