Renardo Cruz, 39, of La Loma, did not resist arrest when accosted by NCRPO agents on the EDSA-Balintawak Interchange at about 4:43 p.m.
The arrest of Cruz is part of the intensified anti-extortion campaign ordered by Metro police chief Director Vidal Querol.
Cruz yielded the marked money one P500 and three P100 bills. These have been forwarded to the crime laboratory at Camp Crame for examination and verification.
Senior Superintendent Felipe Rojas Jr., NCRPO intelligence chief, ordered a surveillance operation at the interchange amid reports of rampant extortion activities by traffic enforcers.
After confirming the report, Rojas directed Chief Inspector Edwin Wagan, of the NCRPOs counter-intelligence special unit (CISU), to conduct an entrapment operation against Cruz.
Without him knowing it, Cruz flagged down the bait vehicle driven by PO2 Gilbert Soriano.
Rojas said Cruz demanded P800 from Soriano in exchange for the non-confiscation of his drivers license.
After handing over the marked money, Soriano signaled his companions and Cruz was arrested.
He was taken to the CISU office at Camp Bagong Diwa in Taguig City for tactical interrogation.
Police are readying extortion charges against him before the Quezon City prosecutors office. Non Alquitran