External intelligence agency RAW has been asked to look into suspicious transactions amid reports that black money is being pumped into the market.

This move comes as the government expects FDI inflows to rise by 40-45 per cent in 2016, as it plans further steps to attract foreign capital.

This step was taken after the Cabinet Secretariat had proposed a comprehensive database on FDI.

The decision to involve RAW was taken at a meeting of a "working group on intelligence apparatus pertaining to Economic Intelligence Council", official sources said.

During the meeting, which was presided over by the Revenue Secretary and attended by officials of intelligence and central security agencies, the need for an extensive database exclusively for verification and analysis of FDI related cases, as proposed by the Cabinet Secretariat, was also discussed.

It was suggested that information on source of funding among others, can be stored in the National Economic Intelligence Network database of Central Economic Intelligence Bureau (CEIB), the sources said.

Sources added that the inputs related to suspicious transactions can be shared with RAW and the intelligence agency would later ascertain whether the source of funding was black money, money from drugs or terror related cases.