Police arrested three persons in possession of forged banknotes worth Rs 993,000 in Ishnath Municipality-4 in Rautahat district, on Sunday evening.

The arrested has been identified as Shatrudhan Warai Thakur (38) of Batteshwor Rural Municipality in Dhanusha district; Ranjit Mahato (30) of Bandra Pashupatinagar in Bardibas Municipality-9 of Mahottari district, and Dipendra Kumar Mahato (25) of Premnagar in Bhangaha Municipality-4 in Mahottari.

A team of security personnel deployed from Mathiya-based police post intercepted them near a Kali temple for the security check and arrested them after recovering forged 1,000-Rupee denomination Nepali currency. They were entering Nepal from India.

Further investigation into the case is underway, said police.