Acting on a tip off, a special team from police's custom security cell, arrested the two Nepalese nationals as they were smuggling the fake notes into Nepal from India.
In a separate incident, an Indian national was arrested with a live Asiatic Rock Python from Sinamangal near Tribhuvan International Airport in Kathmandu yesterday.
Police said Balak Nath, a resident of Rajasthan, was arrested with endangered Python while he was showing it around Sinamangal area, police said today.
He will be charged under the National Parks and Wildlife Conservation Act, they said.