(1) The university shall establish the following funds, namely :-
(a) General Fund;
(b) Salary Fund;
(c) Trust Fund;
(d) Development and Programme Fund;
(e) Contingency Fund;
(f) any other fund which, in the opinion of the university, is deemed necessary to establish.
(2) The following shall form part of, or be paid into the General Fund,-
(a) non-salary contribution or grant received from the State Government or Central Government or University Grants Commission;
(b) all incomes of the university from any source whatsoever, including income from fees and charges;
(c) any sums borrowed from the banks or any other agency, with the permission of the State Government;
(d) sums received from any other source or agency.
(3) The Salary Funds shall consist of all amounts received from the State Government, Central Government or University Grants Commission towards full or part payment of the salary and allowances. No amount from this fund shall be utilised for the other than payment of salary and allowances.
(4) All income or moneys from trusts, bequests, donations, endowments, subventions and similar grants shall form the Trust Fund.
(5) (a) The Development and Programme Fund of the university shall consist of all infrastructure development grants received from the State Government, all contributions made by the University Grants Commission for development and research grants received from other fundings agencies of the Central Government, United Nations and its affiliates, other international agencies, industry i.e. banks, financial institutions or any person;
(b) No amount from this fund shall be appropriated to any other funds of the university or expanded for any other purpose;
(c) The Development and Programme Fund shall be utilised in the manner consistent with the object of the programmes for which a suitable code will be adopted to include the guidelines of the funding agency on expenditure and audit, to be granted and approved by the Vyavasthapana Parishad.
(6) The university shall have and maintain a Contingency Fund under a separate head of the university accounts which shall be used only for the purposes of meeting any unforeseen expenditure.
(7) Surplus money at the credit of these funds, which cannot immediately or at any early date be applied for the purposes aforesaid shall, from time to time, be deposited in the bank as directed by the Vyavasthapana Parishad.
Explanation.- For the purposes of this sub-section, the expression "bank" means,-
(i) the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955);
(ii) a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);
(iii) a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or under section 3 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980 (40 of 1980);
(iv) any other bank, being a Scheduled Bank as defined in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934), or being such a bank as may be approved by the State Government.