Mohammed Aajad, 40, was arrested at the airport's departure checking counter after USD 38,500 was allegedly found in his possession.
Police found the dollars hidden in his body while frisking Aajad, officials said. He had not declared the currency to authorities.
Aajad was bound for Delhi on an Air Arabia flight, police said.
Ananda Kumar, another Indian national, was arrested after police allegedly found 1.5 kg of gold biscuits in his possession when he was about to board a domestic flight.
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Leonard John David Rubin, a 39-year-old US policeman on his way to Mount Everest, was arrested on Saturday for possessing seven bullets which he claimed he had inadvertently carried in his hand luggage.
An official at Gaushala police station in Kathmandu said Rubin was still in custody though no gun was found in his possession.
Rubin was arrested when he was checking in for a domestic flight to Lukla near the Everest base camp. He told officials he had forgotten to remove the bullets from his hand luggage before leaving the US.