However, that too is yet to be formally signed.
During aviation talks at the secretary level in New Delhi last week, India also reiterated its request to allow air marshals on board select flights from Kathmandu to Indian metros.
Though the Indian government has been seeking such a measure in the wake of the hijack of an Indian Airlines aircraft from Kathmandu to New Delhi, Nepal is yet to concede the safety measure.
India is also worried at the growing circulation of fake Indian currency from Nepal and Rao said she had mentioned the concern during her meeting with her Nepali counterpart, Gyan Chandra Acharya.
The home secretaries of the two nations will continue security talks in Kathmandu Nov 6-7, Rao said.
The nearly 1,800-km open border between the two countries also remains a grave security issue. Besides being infiltrated by terror operators, it was also creating acrimony between the two governments with accusations of encroachment.
Though Rao said 96 percent of the strip maps of the newly delineated border have been prepared, there were reports that while the Indian foreign secretary wanted Prime Minister Madhav Kumar Nepal's government to sign the new strips, Nepal has blocked the effort.
The Nepal government is proposing that the new border be made official only after the hot spots are resolved, which is not likely in near future.