Kausar Ali (32) and Bhola Kumar, both residing in Khyala in Delhi, were apprehended yesterday by a team of Delhi Police's Crime Branch on a tip off, a senior police official said.
"Ali belongs to Champaran in Bihar while Kumar is from Motihari in the same state. They used to go to Nepal to procure fake currency in instalments," the official said.
Both work as tailors in the capital.
According to the official, 1,000 fake notes with Rs 1,000 denomination and 2,000 fake notes with Rs 500 denomination were recovered from them.
A case has been registered and further investigations are on.
On March six, Delhi Police had arrested three youths, including one who "worked" as a communication expert with Hizbul Mujahiddin, for allegedly possessing counterfeit notes with a face value of Rs ten lakh.
Mohd Yunus (32), who allegedly has links with Hizb, Sirajuddin (26) and a graphic designer Mohd Asif (26) were apprehended from near Khan Market.
According to reports, the government has pegged that fake currency with a face value of Rs 16,000 crore is circulating in the country.
The 2011 International Narcotics Control Strategy Report of the US State Department has said that India faces an increasing inflow of counterfeit currency, produced primarily in Pakistan, and terrorist and criminal networks use this money to finance their activities in the country.