Both sides reviewed the implementation of the decisions taken at the previous meetings and held focused discussion on the issues relating to security, border management and training, provisioning and capacity building.

The discussions on security related issues centered on effective cooperation in combating terrorist activities including activities of insurgent groups, circulation of fake currency notes, and institutionalising the mechanism for real-time exchange of security related information between the two countries.

The 13-member Nepalese delegation was led by Dr Gobinda Prasad Kusum, Secretary at Home Ministry, while the Indian Home Secretary Madhukar Gupta led the Indian team.

Indian side had expressed serious concerns over alleged involvement of Pakistan's Inter-Services Intelligence's involvement in fake Indian currency circulation in Nepal. Nepali side, however, had stressed on the fact that all terrorist and criminal activities should be construed as terrorist activities instead of pointing finger at a certain group.

"Instead of pointing finger just at ISI we stressed that all those involved in criminal activities be treated as criminals," said Joint Secretary Mod Raj Dotel, spokesperson at Home Ministry, after the meeting.

Indian government has offered its support and cooperation in matters relating to training and strengthening of Nepal Police, Armed Police Force and other officials to help combat cross border criminal activities. It also agreed to set up a Police Academy with an estimated investment of Rs 1.5 billion in Nepal.

During the meeting, the Indian side also raised the issue of security of Indian aircrafts. Sources said Indian government has received intelligence reports that its aircraft could be hijacked from Kathmandu airport.