Fake Indian currency notes are being used by Pakistan-based terror groups for financing their activities in India, the Lok Sabha was informed on Monday.
"As per available information, militants active in India are also funded by their outfits based abroad, particularly in Pakistan, often routed through third countries.
"For the past several years FICN has been a well-known source for terror financing in India," Defence Minister A K Antony said in a written reply.
He said the government has taken various measures to check terrorist activities in the country such as augmenting the strength of Central armed police forces, establishment of National Security Guards hubs, strengthening of multi agency centre to function on 24x7 basis for real-time collation and sharing of intelligence with other intelligence and security agencies and effective border management.
"The Unlawful Activities (Prevention) Act has been amended to strengthen the punitive measures to combat terrorism.
The National Investigation Agency (NIA) has been constituted to investigate and prosecute such offences," he said.
In reply to another query on modernisation of armed forces, Antony said the Defence Acquisition Council has accorded approvals to proposals worth about Rs 48,000 in the present fiscal.