Two people have been arrested in possession of IRs 500,000 of the banned denominations 500 and 1,000 from Buddhanagar in the Capital, police said on Friday.

Acting on a tip-off, police arrested Ganesh Ghimire, 44, of Samakhushi, and Tirtha Raj Pokharel, 52, of Buddhanagar with the amount.

Police suspect that the duo was involved in a money laundering racket. (PR)