Police arrested the two Nepali nationals on Wednesday and confiscated 5,451 banned Indian notes of Rs 500 denomination and 2,206 notes of Rs 1,000 denomination.
Pokharel said the men used to collect the money from the border areas and bring it to Kathmandu.
Billions of demonetized Indian currency notes are lying in various Nepali banks and financial institutions for swapping. The Indian government in November 2016 demonetised high value Rs 500 and Rs 1,000 notes with an aim to curb black money.
Nepal has become safe haven for trafficking the banned notes from India. Kathmandu has repeatedly requested New Delhi to make arrangements for exchange facilities but there has been no understanding on the issue so far.
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