Raxaul Station House Officer Rajeshwar Prasad said during frisking police recovered the fake currency notes which the four were smuggling into the country.
The recovery took place in Laxmipur village under Raxaul police station of the district in the wee hours.
The four, including a woman, had entered into the Indian side from Nepal, the SHO said.
During questioning, the woman tried to mislead the police team by giving a false identity and address, the SHO said.