Police here also arrested another Amritsar resident, Yudhvir Singh, from Chandigarh Friday night. Officials said he was the kingpin of this racket and Savinder Kaur was arrested on information from him.

Police sources said that during the interrogation, Yudhvir admitted that they procured fake notes from across the border and they made a profit of around Rs.50,000 for every Rs. 100,000 in fake notes.

Five other members of this gang were arrested last month.

'We have also shown these seized currency notes to the RBI (Reserve Bank of India) officials. They said that it is very difficult for a layman to differentiate these fake notes from the original,' Khaira said.

He said the gang was supplying these fake notes in Chandigarh, Punjab, Haryana and Himachal Pradesh and there is a possibility of more arrests in the coming days.