Shafiq was arrested in the Kamrauli police station area while trying to use fake currency notes in market, they said, adding that 22 Rs 500 notes and one Rs 1000 note were recovered from him, police said.
Shafiq used to bring fake notes from West Bengal and use it in market or at petrol pumps, they said.
He told police that he also used to exchange fake notes with face value of Rs 5000 with Rs 3000 genuine notes.