In an address at a seminar, the army chief said senior military commanders of India and China are holding talks to iron out modalities for deescalation of tension in eastern Ladakh.
Gen Naravane's three-day visit to Nepal was largely aimed at resetting bilateral ties that came under severe strain following a bitter border row between the two countries.
He was also presented a sword and scroll during the function held at the President's official residence 'ShitalNiwas' in Kathmandu.
Myanmar is one of India's strategic neighbours and shares a 1,640-km-long border with a number of northeastern states including militancy-hit Nagaland and Manipur.
Government's high-power China Study Group carries out comprehensive review of situation in eastern Ladakh
Army Chief Gen. M M Naravane briefed the meeting about the fresh face-offs between Indian and Chinese troops at both the north and south bank of the Pangong lake.
During his interaction with soldiers deployed in the high altitude areas, he appreciated their high morale and complimented them on their response to Pakistan's ceasefire violations.
During Tuesday's visit, General Naravane was accompanied by Lt General R P Singh, Army Commander, Western Command, the statement said.
Gen Naravane took stock of the Army's combat preparedness in four forward areas and interacted with soldiers deployed there besides holding detailed deliberations with ground commanders.
The situation along the border deteriorated following the Galwan Valley clashes as the two sides significantly bolstered their deployments in most areas along the 3,500-km de facto border.
Army Chief General M M Naravane also said a majority of the recent anti-terrorist operations were based on information provided by locals.
The Army chief also said both sides have begun to disengage in a phased manner and the process has started from the north.
Analysts say Indian side ignored increased Chinese activity along Line of Actual Control
General Naravane said a directive has been received from the government to cut expenditure by 20 per cent in the first quarter of 2020-21 and the Army is implementing it.
Addressing a special press briefing along with the three service chiefs, Gen Rawat said the nation stood together and showed resilience in dealing with the coronavirus pandemic.