In March, the official website of Office of the Principal Controller of Defence Accounts (Officers) was believed to have been hacked compromising personal details of many Army personnel.
Defence Minister Manohar Parrikar told the House that action has been taken in the matter, with the website being secured and hosted on the NIC network.
"It was a case of a private server which was used on outsourcing... We have issued instructions not to take private servers for hosting Army websites," he said during Question Hour.
Meanwhile, Parrikar noted that no operational matter of the Army, Air Force or Navy is on the Internet.
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"It is all on intranet... It is within the force-specific network for Army, Air Force and Navy," he added.
In reply to another question, Parrikar said the government has taken a number of steps to protect confidential information pertaining to the defence sector from cyber attack.
"However, cyber attacks are faced by Internet connected personal computers and these relate to unauthorised data access, denial of service, compromise of logic credentials," he said.