They were nabbed from the famous tourist hub of Thamel, four kilometres from Kathmandu, and seized Rs 10 million fake Indian currency notes with Rs 500 denomination, police said.
Those who were arrested were Pakistani national Nadin Mohmad and five Nepali nationals.
"We have been successful in arresting them after following them for a long time. The gang were involved in printing and supplying fake Indian notes, " said an official of the investigation team.
Necessary legal action is being initiated against them by taking them into custody.