Acting Sergeant Tim Elliott said the two $50 notes were handed to businesses as payment.

“The notes are of good quality but on closer inspection you can tell they are counterfeit,” he said.

Both of the notes carry blue Chinese characters over the clear window and black stripes at the opposite top corner. 

A former Bendigo Chinese student translated the characters to be: "Practice Kongfu tickets sample. Special use of the Kongfu, no circulate."

“We’re asking local businesses to be vigilant in notes they’re accepting and to report any counterfeit notes to Bendigo police,” Acting Sergeant Elliott said.

Bendigo police can be reached on 5448 1300.