The accused has been identified as Chand Mohammad, a resident of Kasba Jarcha, and 12 fake currency notes of Rs 1,000 denomination was recovered from him, said S K Rana, SHO Jarcha.
With his arrest police claims to have busted a fake currency racket.
During interrogation, he said, Mohammed revealed that his relative Shakir used to bring fake currency from Pakistan via Bangladesh.
He further told that recently he had sold fake currency having face value of Rs 50,000 in exchange of original currency notes worth Rs 25,000.