So, in the early 1980s, taking advantage of the newly emerging computer technology and software, they developed asset-liability management models that integrated information on deposit and loan repricing. Further, the management committees responsible for interest rate risk changed. Instead of committees that included only management from the funding-desk and investment-portfolio management, a new group was created - the Asset/Liability Committee, or ALCO.
It can be found even in the Preamble of the Reserve Bank of India (RBI) Act 1934, ‘to use the currency system to the country’s advantage and with a view to securing monetary stability’. Here monetary stability may be interpreted as internal as well as external stability, implying stable exchange rate as one of the overall objectives of the reserve management policy.