Four men were arrested here with demonetised notes of the face value of Rs 3.98 crore, the Bengaluru police said on Tuesday.

"The accused, Nanjunda, 46, Ambrose, 46, and Arif Pasha, 34, from Bengaluru and Felix, 35, from Kerala, were arrested and the old currency notes have been seized from them," Additional Commissioner of Police (Crime) S. Ravi told reporters in Bengaluru.

The four persons were arrested under Section 7 of the Specified Bank Notes (Cessation of Liabilities) Act, 2017, which entails six-month imprisonment.

"On a tip-off, the City Crime Branch (CCB) police arrested the four men and seized a car parked in front of a lodge in southern suburb. The accused had kept the banned notes in the car to exchange for new notes," Ravi said.

On March 23, two men were arrested in Bengaluru with demonetised notes of the face value of Rs 1.28 crore which they were attempting to exchange for new notes.

This comes just a few days before the March 31 deadline to exchange old notes with the RBI.

A few days earlier, two persons were arrested in Bengaluru for possessing demonetised high-value currency notes of the face value of Rs 1.28 crore in an attempting to exchange them for new notes, the city police said on Thursday.

"Jemmy Rahul, 34, from the city, and Ajay, 26, from Uttara Kannada district in the coastal region, were arrested and the old currency notes were seized from them," Bengaluru Police Commissioner Praveen Sood told reporters.

(With IANS inputs)