Acting on a tip-off, police arrested Parmeshwar Kumar, Lalan Sahni and Prem Chander, who had boarded the train from Betiah in Bihar, and seized the fake notes.
The counterfeit notes were in denomination of 500 and 1,000, police said.
"During interrogation, the trio told police that they were to use the fake currency notes in footpath markets and weekly bazars as poor people of these markets cannot distinguish between fake and genuine notes," Additional Commissioner of Police (Crime Branch) Ravindra Yadav said.