The police arrested Nepalese national Seikh Safi Ahmed, 51, and his son Sahid Iqbal from Kupandole on Sunday, Dec 27 and seized counterfeit notes with a face value of Rs 8 million.
The seized fake notes, with Rs 500 and Rs 1,000 denominations, was reportedly printed in Pakistan.
The arrests were made when the police raided a rented room of the suspects acting on a tip off.
The police said that the currency entered the country through Tribhuvan International Airport (TIA) last month via air cargo.
They added that the one who delivered the fake notes was still missing.