Two youth were arrested on Monday in Telangana for allegedly trying to circulate a colour copy of a new Rs 2,000 note, police said.
The incident occurred in Kuravi mandal in Mahabubabad district.
One youth, identified as Pradeep, filled petrol worth Rs 200 and gave the fake Rs 2,000 note.
Petrol pump staff, however, grew suspicious on seeing the new note.
They handed over the youth along with the note to police.
Mahabubabad rural police questioned the youth and also took his friend Anil into custody.
Police were conducting searches at their houses to find out if they were involved in making more copies of the new currency note.