Acting on a tip off, the police arrested the Nepalese man, identified as Sohan Sah, while he was going to Bhelahi bazar for shopping with the fake Indian currency notes, the police said.
A motorcycle and a mobile phone were also seized from the possession of the Nepalese man, who hails from Bherihari village in Nepal.
He was being questioned about source of the fake Indian currency notes, he said.