"It (Pakistan) should extend full cooperation in checking terrorism because the country is facing a similar problem today," Singh told reporters.
On Pakistan's strong reaction to Defence Minister Manohar Parrikar's recent remarks about neutralising terrorists through terrorists, Singh said, "Not only India, but the entire world knows who is promoting terrorism."
Reacting to Parrikar's comments, Adviser to Pakistan Prime Minister on National Security and Foreign Affairs Sartaj Aziz had said it confirmed Islamabad's apprehensions that India was involved in terrorism in that country.
Earlier, addressing a SBI officers' convention Singh expressed concern over Fake Indian Currency Note (FICN) racket and said it was used to promote terrorism.
"FICN is a big problem as fake currency is used to promote terrorism," he said and asked banks to be alert to that.
The Home Minister said India was taking all steps to fight terrorism.
He described the nationalisation of banks as the "biggest" decision taken post-independence to improve the health of the economy.
"But even after nationalisation the connect with the people was not there. I want to congratulate the banking sector that they associated 15 crore families under Jan Dhan scheme. It's not a small achivement," he said.
The Home Minister also lauded Prime Minister Narendra Modi for launching social security schemes.
"Even those who criticise us will realise this sooner or later. Even the International Monetary Fund (IMF) has appeciated the scheme," he said.
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