Police has arrested two persons in possession of counterfeit Nepali currency with a face value of Rs 174,000 from Biratnagar-9 in Morang. 

The duo— Sangit Mahato and Suman Tolange— were made public at a press meet organised by the District Police Office (DPO) on Sunday.

Mahato and Tolange, both Biratnagar natives, were arrested with 348 fake bills of 500 denomination.

SP Sandip Bhandari said a police team was deployed to catch the suspects after the DPO was tipped off about a fake currency racket active in the region a few months ago.

The duplicate 500 rupee bills recovered from the two men were slightly shorter and thicker than original ones, without Rhododendron watermark and with repeated serial numbers.

 SP Bhandari said they were after the other persons involved in the case. 

All banks in the region were alerted about the circulation of fake notes soon after the DPO learnt about the racket.