The accused also carried fake Aadhaar cards and passports, Kadapa's Sub-Divisional Police Officer S K Masoom Basha said today.
The duo was part of a six-member gang that came to Kadapa to lure gullible people into their trap and fleece them of money, he said.
The arrested persons, identified as Mathovar Thofik and Munshi Mohammad Islam Pinto of Madaripur district in Bangladesh, had been residing in New Delhi for some time now, he said.
"They came to Kadapa a few days ago and contacted some persons in need of dollars. They showed a few original dollars to gain confidence and, at the time of the actual exchange of money, they supplied bundles of fake notes," the SDPO said.
Based on the complaints filed by the victims, the Chinna Chowk police in Kadapa laid a trap and arrested the two Bangladeshis near a bus stand in the town last evening, Basha said.
A search is on for their accomplices, the official added.