Two people were arrested on Sunday with fake currency notes of face value Rs.3.98 lakh in Bihar's Muzaffarpur district, police said.
They were arrested by the Directorate of Revenue Intelligence (DRI) at Maithi when they were on their way to deliver the counterfeit notes at Bettiah, the district headquarters of West Champaran.
The fake notes had come from Bangladesh, police said.
DRI officials interrogated the two people, residents of Malda district in West Bengal, for information on more people involved in the racket.
Officials said Bihar has emerged as a hub for distribution of fake notes.
Till a few years ago, counterfeit notes brought from Bangladesh were smuggled to Nepal via West Bengal and Bihar before being pumped back into the country.
Last month, two people were arrested with fake notes of face value Rs.10 lakh from the Muzaffarpur railway station. Muzaffarpur is about 70 km from Patna.
During January-November 2013, nine people were arrested in Bihar and fake currency notes of face value Rs.18 lakh seized from them.
This year, fake notes of face value Rs.20 lakh have already been seized and at least half a dozen people arrested.
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