New Delhi, Feb 18 (IANS): India and the US have agreed to cooperate to crack the financial network and fund raising activities of Pakistan-based terror outfits and also in tackling counterfeit currency and illegal financial transactions.

This was stated by Minister of State for Home R.P.N. Singh in the Lok Sabha Tuesday.

He said India and the US have agreed to work together under the framework of the India-US (ministry of home affairs and department of homeland security) bilateral discussions.

A bilateral meeting held in October 2013 facilitated the exchange of such information between concerned agencies of both the countries.

India and the US have agreed to have cooperation between their agencies in fighting against counterfeit currency and illegal financial transactions under the aegis of the India-US Homeland Security dialogue, said an official statement.

A sub-group on "illicit finance, illegal smuggling of cash, financial fraud and counterfeiting" has been formed to work in the areas of information exchange, capacity building and technical/research cooperation.

US Homeland Security and Indian agencies are working together to investigate sources of material and technologies used in the production of fake Indian currency notes, said the statement.