Two youth were allegedly trying to circulate a colour copy of a new Rs 2,000 note, while filling petrol.
The incident occurred in Kuravi mandal in Mahabubabad district.
"One of the accused is identified as Pradeep, a 17-year-old student, who filled petrol worth Rs 200 and gave the fake Rs 2,000 note in the petrol pump," Krishna Reddy, Inspector in Kuravi Police Station told The News Minute.
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, on questioning the youth also found his friend Anil is involved.
"We are still investigating, and likely to arrest them today," Krishna said.
Police were conducting searches at their houses to find out if they were involved in making more copies of the new currency note.