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IFRSAs International Journal Of Computing|Vol2|issue 2|April 2012 375

Characteristic Extraction Parameters for Genuine Paper Currency

Verification Based on Image Processing
Rubeena Mirza, Vinti Nanda
M.Tech Scholar, CSIT (Durg), Assistant Professor, CSIT (Durg)
An efficient currency recognition system is vital for the automation in many sectors such as vending machine; rail
way ticket counter, banking system, shopping mall, currency exchange service etc. The paper currency recognition
is significant for a number of reasons. a) They become old early than coins; b) The possibility of joining broken
currency is greater than that of coin currency; c) Coin currency is restricted to smaller range. There is a need to
design a system that is helpful in recognition of paper currency notes with fast speed and in less time. This paper
describes the comparison of characteristics which are better for verification process. Three characteristics of paper
currencies are considered here including identification mark, security thread and watermark. The approach consists
of image acquisition, preprocessing, edge detection, image segmentation, characteristic extraction and comparison
of characteristics. The characteristics of testing currency are compared with original currency and result will be
displayed whether the testing currency is genuine or counterfeit.
Keywords: Characteristic Extraction, Counterfeit Detection, Image Processing, Paper Currency Verification.
Modern science brings amazing convenience, but it also leads to some crimes. Automatic machines capable of
recognizing banknotes are massively used in automatic dispensers of a number of different products, ranging from
cigarettes to bus tickets, as well as in many automatic banking operations. The wide range of applications of these
machines places severe constraints on their cost, performance, and, consequently, architectural solutions. For
instance, most machines operating in automatic dispensers are not very effective in terms of performance, but they
are available at very low cost, whereas machines used in banking operations usually have to pass very severe tests,
but are available at a higher cost.
The purpose of this work is to implement a system which recognizes the paper currency on the basis of its
characteristics or features. Characteristic extraction of images is challenging work in digital image processing. It
involves extraction of visible and some invisible features of currency notes. A good characteristic extraction scheme
should maintain and enhance those characteristics of the input data which make distinct pattern classes separate
from each other. Hence it is necessary to develop the currency recognition systems that can not only realize correct
recognitions and classifications for known paper currencies, but also complete effective rejections for unknown
paper currencies.
Characteristic extraction is that of extracting from the raw data the information which is most relevant for
classification purposes, in the sense of minimizing the within-class pattern variability while enhancing the between-
class pattern variability. During the characteristic extraction process the dimensionality of data is reduced. This is
almost always necessary, due to the technical limits in memory and computation time. The approach consists of a
number of steps including image acquisition, gray scale conversion, edge detection, image segmentation, feature
extraction and comparison of features. Edge detection and image segmentation are the most important tasks
performed on the images.
The name image processing is most appropriate when both inputs and outputs are images. The extraction of arbitrary
information from images is the domain of image analysis, which includes pattern recognition when the patterns to be
identified are in images. In computer vision one seeks to extract more abstract information, such as the 3D
description of a scene from video footage of it. The tools and concepts of image processing are also relevant to
International journal of Computing
Journal homepage: www.ifrsa.org
R Mirza, V Nanda| Characteristic Extraction Parameters for Genuine Paper Currency Verification
Based on Image Processing
IFRSAs International Journal Of Computing|Vol2|issue 2|April 2012 376
image synthesis from more abstract models, which is a major branch of computer graphics. In this work, image
processing is used with MATLAB to detect the characteristics of currency image.
Currently, there are a number of methods for paper currency recognition [3][4][7]. HSV color space is widely used
in computer graphics, visualization in scientific computing and other fields [3]. In this space, hue is used to
distinguish colors, saturation is the percentage of white light added to a pure color and value refers to the perceived
light intensity. In this work, feature extraction of Indian Paper currency is done by analyzing its: Color Histogram,
Hue, Saturation, and Intensity/Value. The recognition system is composed of three parts. The captured image is first
preprocessed by reducing data dimensionalities and extracting its features by using image processing toolbox in
MATLAB. According to the HSV (Hue, Saturation, Value) color space, the work of color feature extraction is
finished. The second one is recognition, in which the core is neural network classifier. And finally the result of
recognition will be displayed on AVR microcontroller ATMega32. The microcontroller then determines the validity
of the note by glowing LED for Counterfeit Paper Currency. Fitting tool of Neural Network is used for the purpose
of paper currency verification and recognition.
Undoubtedly HSV color space extracted the features of paper currency by analyzing its hue, saturation and value
component easily but these features are not completely useful for recognition of paper currency because banknotes
are getting worn and torn with the passing of time and they are even dirtier when holding by dirty hands or in dirt. If
any banknote is dirty or it may be changed into any other color, the hue, saturation and value content of banknote
may change largely. Therefore, when analyzing hue, saturation and value component of a dirty banknote, these
values are change at a greater extent and could not match with the original values of paper currency.
In another technique for paper currency recognition [4], three characteristics of paper currencies including size,
color and texture are used in the recognition. The first phase of recognition in the algorithm considers size of the
banknote. The significant issue in considering this characteristic is that the edges of banknotes are generally worn
and torn due to circulations. Hence, its size is reduced, or even is increased slightly in rejoining the torn banknotes.
Although a variety of colors are used in each paper currency, people normally use one or more dominant color for
distinguishing between different paper currencies. In this paper, image of the banknote is transformed to an image in
gray scale. Then the gray scale level is reduced to have a significant judgment about the background color. In this
paper the banknote images are quantized to 52 levels in gray scale. Then histogram of the image is calculated to find
the plentitude of different color in the banknote. The Markov chain concept has been considered to model texture of
the paper currencies as a random process.
When counterfeiters print the paper currency they will assure that the size and color of the currency should be exact
replica of the original one because these features can be simply photocopied. Therefore for counterfeiters it is easy
to analyze its size and color.
To recognize optical character with noise pollution rapidly and accurately, a novel approach for character feature
extraction based on statistics and fuzzy membership is proposed [7]. The entire process is divided into image
preprocessing and character recognition, including edge detection, roi (Region of Interest) extraction, distortion
correction and serial number extraction, character segmentation, as well as pattern recognition. The character
extraction and recognition is based on RBF network which achieves a better anti-noise performance, greater degree
of differentiation and lower time and space complexity.
The serial number is another important feature of any paper currency but for the counterfeiters it is very for them to
print the same serial number on the counterfeit note. It can be done by copying it or photocopied the same on the
counterfeit note.
In this paper, the entire characteristics of the paper currency and the characteristic extraction of the system are
described. The system uses the image processing techniques for the feature extraction and counterfeit detection. The
features are better than the previously considered features.
R Mirza, V Nanda| Characteristic Extraction Parameters for Genuine Paper Currency Verification
Based on Image Processing
IFRSAs International Journal Of Computing|Vol2|issue 2|April 2012 377
There are a number of features of Indian paper currency on the basis of which a denomination can be verified. Some
of them are shown below:

Figure 1: Features of Original 500 Denomination.
A. Latent image
It is a vertical band on front side of denomination at right hand side. It contains latent image showing the numeral of
the denomination when the banknote is held horizontally at eye level.
B. Electrolyte Watermark
In addition to the Mahatma Gandhi watermark, the denominational numeral 500 appears alongside Mahatma Gandhi
portrait in the watermark window.
C. See Through Register
The floral design printed on both the front and reverse in the middle of the security thread and next to the watermark
window has the denominational numeral 500. Half the numeral is printed on the obverse and half on the reverse.
Both the printed portions have an accurate back to back registration so the numeral appears as one when viewed
against light.
D. I ntaglio Printing
This gives a more complex and reliable method, since it is the printing process itself that serves to vouch for the
authenticity of the document. The note is subjected to a high-pressure printing process that strengthens and slightly
raises the papers surface structure. This method can also be used with optically-variable ink to produce interference
which shows different spectral colors when viewed from different angles.
E. Omron Anti-photocopying Feature
The feature appears in the form of tiny yellow circles on either side of the legend Reserve Bank of India. A banknote
with this feature, when copied by a color photocopier, gives an output with a different color shade.
F. Micro lettering
The letters RBI and the numeral 500 can be viewed the help of a magnifying glass in the zone between the
Mahatma Gandhi portrait and the Security thread.
G. Optically Variable I nk
The color of the numeral 500 appears green when the note is held flat but would change to blue when the note is
held at an angle. The font size is reduced.
H. Ultraviolet Fluorescence
It is another important feature of notes. Fluorescence can be seen when notes are held under ultra-violet lamp.
Number panel, optical fibers, security thread of Rs. 100 and 500 notes appear in blue color and Rs. 1000 notes in
rainbow color.
See through

Serial number Watermark
Latent image
Micro lettering
Intaglio printing
Optically variable ink
R Mirza, V Nanda| Characteristic Extraction Parameters for Genuine Paper Currency Verification
Based on Image Processing
IFRSAs International Journal Of Computing|Vol2|issue 2|April 2012 378

Figure 2: Fluorescence number panel seen blue under ultra-violet lamp
Basically, at first instance, people may not pay attention to the details and exact characteristics of banknotes for their
recognition, rather they consider the common characteristics of banknotes such as the size, the background color
(the basic color), and texture present on the banknotes. In this method, the following characteristics will be used to
differentiate between different banknote denominations-
A. Identification Mark
A symbol with intaglio prints which can be felt by touch, helps the visually impaired to identify the denomination.
In 500 denominations the identification mark is a circle. In 1000 denominations the identification mark is a
B. Security Thread
It is a 3.00 mm wide strip with inscriptions .art and RBI and color shift from green to blue when viewed from
different angles. The thread is visible as a continuous line from behind when held up against light.
C. Watermark
The portrait of Mahatma Gandhi, the multidirectional lines and on electrolyte mark showing the denominational
numeral appear in this section and these can be viewed better when the banknote is held against light.
In this paper, essentially the features of paper currency are compared with the features that were considered in the
previous work. This system focused on three characteristics of Indian paper currency that are mentioned above. The
identification mark, security thread and watermark are not affected largely by crushing or making it dirty. The
security thread of genuine currency has inscriptions .art and RBI and color shift from green to blue when viewed
from different angles, this is not present in counterfeit note.
In this work, three characteristics of testing currency are compared with the same characteristics of original
currency. If they are same then the testing currency will be genuine otherwise it is counterfeit. Initially only one
denomination of 100, 500 and 1000 are tested for the above mentioned three features. These features are simple but
important because whatever may be the condition of the banknote whether it is dirty or worn or torn, these features
are not affected, they are still visible. Therefore, on the basis of these features paper currency can be verified.
There are a number of differences between a genuine and a counterfeit note. The three main differences are:
1. If a genuine currency note is held against light, the portrait of a great national personality like Abraham
Lincoln or Mahatma Gandhi or the Queen of England is seen. Sophisticated counterfeits too will have such
portraits, but they will not be as clear and prominent as those in genuine notes.
2. All genuine notes have watermarks. These are made with magnetic ink and counterfeit notes may not have
3. A genuine currency note will glow when held under ultraviolet light but not a counterfeit currency note.
This paper mainly compared the characteristics of paper currency which are considered in this work with the
characteristics of currency considered in earlier work. Three characteristics including identification mark, security
thread and watermark are focused in this system and they are better for the purpose of verification of paper currency.
The characteristic extraction is done by using image processing techniques and graphical user interface is designed
for the system. In this approach, implementation will be done for only one denomination of 100, 500 and 1000 and
R Mirza, V Nanda| Characteristic Extraction Parameters for Genuine Paper Currency Verification
Based on Image Processing
IFRSAs International Journal Of Computing|Vol2|issue 2|April 2012 379
further it will be implemented for more denominations and will use other features of the paper currency. It will
surely help us in verifying the counterfeit currency which is a great problem of every country.
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