The Institute has an Investment Committee in place to consider investment of all types of funds(including alumni/endowment fund).

The sustainable measures being undertaken in the Institute during investment are as under:

The Institute has framed its own internal policy in conformity with the guidelines issued from Govt. of India as amended from time to time for investment of its surplus fund.

At regular intervals, the notice is placed on IIT (BHU) website for inviting competitive rates from scheduled banks as per RBI list. The envelopes are opened 1-2 days prior to the date of meeting in the presence of the Committee and thereafter a comparative statement is prepared. The investments are then made with those banks whose rates are highest in the comparative statement for getting maximized return on surplus funds.

The forecast of surplus availability is normally worked out for a period of one year at any point of time so as to deploy available funds on longer term basis to get better yield. This forecasting exercise is done quarterly.

In order to utilize surplus funds effectively, the best estimate of the period for which surplus funds would be available to facilitate investment decisions for periods including on day to day basis is done. Further, the Institute takes decisions on all matters relating to short term cash management to avoid asset liability mismatch in the short run.

Institute also has a centralized system of liquidity management for optimum utilization of liquidity for its operation.

For sustainability, the Institute also does not speculate on investment like mutual funds and shares.

In case of premature encashment of bank term deposit due to unforeseen exigency, the difference between fixed yield at the time of investment and actual yield at premature payment is minimized by optimum use of surplus short-term cash.