Ndayambaje was arrested at about 7pm, by the Police in partnership with local residents.
The Western region Police spokesperson, Chief Inspector of Police (CIP) Bonaventure Twizere Karekezi said Ndayambaje was reported by the would-be victim.
"Ndayambaje is a resident of Karago Sector (also in Nyabihu); he had gone to Kiraza Village in Mutaho Cell, Rambura Sector to buy drinks in the shop of one Chantal Nikomeze whom he gave a note of Frw5,000 to pay Frw1000 for a drink he had taken. Nikomeze, however, noticed that the bill was fake and she called the Police," said CIP Karekezi.
He added: "Police officers arrived immediately and arrested Ndayambaje at the scene, searched and found on him other nine counterfeit bills in the denominations of Frw5,000."
Mviyekure said that he got the couterfeit bills from someone, whom he declined to diclose.
He has since been handed over to RIB at Mukamira station for further investigation.
Article 269 of the law determining offences and penalties in general states that any person who, fraudulently counterfeits, falsifies or alters coins or bank notes which are legal tender in Rwanda or abroad, notes issued by the Treasury with its stamp or brand, either banknotes or alike that have legal tender in Rwanda or abroad, or one who introduces or issues in Rwanda such effects or notes with knowledge that they are forged or falsified, commits an offence.
Upon conviction, he/she is liable to imprisonment for a term of not less than five years and not more than seven years.