Home Secretary R K Singh and Nepalese Home Secretary Navin Kumar Ghimire are leading their respective delegations in this three-day long meeting.
Expressing its commitment to increasing the capacity of Nepalese security forces, the Indian delegation would request the Nepalese side to address India's security concerns as the two countries share an open border, according to sources.
A thirteen member delegation from India arrived here yesterday to attend the meeting that would also focus on illegal trade and counterfeit currency among others issues, officials said.
India has previously expressed concern over the emergence of new routes for infiltration into the country via Nepal.
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The last Home Secretary level talks between Nepal and India were held in New Delhi in January 2012.
During those talks both the countries had agreed to expand cooperation in combating terrorism, arms smuggling, insurgency, smuggling of fake currency, human trafficking and trafficking in narcotics and psychotropic substances.
For effective coordination at ground level between the two border security forces it was also agreed to hold annual meetings of Directors General, Sashastra Seema Bal and Inspector General, Armed Police Force of Nepal.
Other important agreements reached between the two governments include continuing training of Nepal Police personnel in India and early finalisation of Memorandum of Understanding for construction of Nepal Police Academy.