Rajahmundry DSP K V Muralikrishna said that K Veera Raghava Reddy of Anaparthy and Suryanarayana Reddy of Machavaram were arrested for allegedly circulating the counterfeit currency in the district.
Allegedly they received counterfeit currency from Sorbham Shaik and Lallu Khan in West Bengal and Bihar for circulating the same in the district, the police said.
Police seized the counterfeit currency, which was allegedly printed in Pakistan.
The case is being investigated, the police said.