Police arrested a young man in possession of 26 fake currency notes amounting to Tk 26,000 from Chandra Bazar in Sadar upazila on Saturday.
The arrestee was identified as Ripon, 24, a resident of Choto Luxmipur village in Haimchar upazila of the district.
Sub-inspector of Sadar Police Station Rafiqul Islam said locals challenged Ripon when he gave a forged note of Tk 1,000 denomination to a shop owner at about 5:30pm.
Later, 25 more forged notes of Tk 1,000 denomination were recovered after searching his body.
On information, police rushed to the spot and arrested Ripon.
A case was filed in this connection.