The National Educational Policy 2020 is a dynamic, progressive and modern framework of education which aims at achieving full human potential among the learners. It aims at providing equal and equitable opportunities, inclusive education to all learners, making them global in outlook yet armed with traditional values. The Academic Bank of Credits proposed under the New Policy of Education, an online repository of credits accumulated by the leaner, to be looked after by the University Grants Commission, promises to provide academic exibility to the students. It will pupils studying at higher educational levels to accumulate credit points by moving across various academic levels such as certicate, diploma, post graduate diploma, graduate and post graduate degree programs, enjoying multiple exit and entry points and having the facility to continue life-long learning. However, there are certain challenges such as risk of dilution, loss of academic rigor, possible adverse impact on the educators, presence of digital divide, lack of digital knowledge and skills among students. However, despite foresight of possible challenges and probable issues, ABC holds great promise for the academic fraternity by laying the path for a exible, student-centric academic journey where the learner is not forced to study the prescribed traditional courses instead he gets to choose a course in accordance with his interests, needs and passion, learning them from institutions of his choice and at self- pace. Thus, the ABC will help to prepare world class learners with global skills and traditional values, which are hallmarks of the present generation of leaners.