Three college students were on Wednesday arrested from Andhra Pradesh's Nellore region for printing fake Rs 500 and Rs 2,000 notes, said reports.
Fake notes worth Rs 1,90,000 were also reportedly seized.
Economic Affairs Secretary Shaktikanta Das had on Tuesday said that fake notes in the system was a 'serious matter'. His response came when asked about instances of fake notes dispensed by the ATMs in the last few days.
A person reportedly received Rs 2,000 notes bearing the term 'Children Bank of India' from an ATM of ICICI Bank in Rohtak, Haryana. A similar incident was reported from an ATM in South Delhi last week.
On February 25, an SBI ATM in Shahjahanpur, Uttar Pradesh, purportedly dispensed a scanned copy of a Rs 2,000 note.
Since demonetisation, there have been several incidents where people have come across fake notes in new denominations.