The man has been identified as Abdul Basheer (42), resident of Talangere in Kerala's Kasaragod district, a DRI release said.
The seizure was made when he arrived at the airport here on August 30 to leave for Dubai.
While checking his luggage, officials at the airport found out that he was in possession of foreign currency notes in excess of the permitted quantity.
He was arrested and later produced before court, the release added.