CURRENCY (OR FAKE CURRENCY DETECTION)

system USING IMAGE PROCESSING

A

Project Report

Submitted

In partial fulfillment for the award of the

Degree of Bachelor of Technology

In

Computer Science & Engineering

Submitted to:- Submitted By:-

R.S. Sharma Ayush Goyal (18/431)

(Asso. Professor) Ayush Singhal (18/433)

Shachi Agarwal (18/476)
Anushka Natani (18/489)
Supervisor:-
R.S. Sharma (Asso. Professor)

Department of Computer Science & Engineering

Rajasthan Technical University, Kota
Session (2021-2022)
 CERTIFICATE

This is to certify that Ayush Goyal, Anushka Natani, Ayush Singhal & Shachi Agarwal of VIII
Semester, B. Tech (Computer Science & Engineering) “2021-22”, have completed a major
project “Currency detection (or fake currency detection) system using Image Processing” in
partial fulfilment for the award of the degree of Bachelor of Technology under Rajasthan
Technical University.

R.S. Sharma
(Associate Prof.)
 ACKNOWLEDGEMENT

We would like to thank our institute University Departments, Rajasthan Technical University,
Kota for giving us the opportunity to do the project in these hard times of the Covid-19
pandemic. Also, this project was made using the skills we gained from the 4 years of our study
at Department of Computer Science.

We would like to extend special thanks to:

Dr. R.K. Banyal – HOD CSE Department RTU, Kota

R.S. Sharma- Associate Professor CSE Department (Project Supervisor)

We would also like to thank various online platforms to give us this golden opportunity to
learn and implement our skills. Without their support, one cannot achieve this success.

We also wanted to thank our parents for financing our studies in this college as well as for
constantly encouraging us to learn Engineering. Their personal sacrifice in providing this
opportunity to learn Engineering is gratefully acknowledged.
 DECLARATION

I hereby declare that the report based on the Major project was carried out and written by
us with our correct and complete knowledge. This work has not been previously formed the
basis for the award of any degree or diploma or certificate nor has been submitted elsewhere
for the award of any degree or diploma.

Date: 13/06/2022 Ayush Goyal

Ayush Singhal

Anushka Natani

Shachi Agarwal
 ABSTRACT

• Nowadays, the circulation of counterfeit money is significantly increased, encouraging

to build a software related to genuine real money detection or counterfeit money
based on digital imagery.

• One of the quality of printers whose ink is very good and can print money like the
original gives the layman a reason to worry.

• The authenticity of money can be tested by using the image processing and algos like
KNN (K-Nearest Neighbor) and CNN (Convolutional Neural Network).

• MATLAB software is used to extract the features of the note. The proposed system has
got advantages like simplicity and high- performance speed.

• We are using KNN for our training and testing of data using image processing.

• We have added a special audio feature for the visually impaired persons.

• We have added a technique for verifying India paper currency.

• The approach gives an efficient method of fake currency detection based on physical
appearance.

• The work will surely be very useful for minimizing the counterfeit currency.
 Table of Contents

• Methodology of project
o Algorithm followed
o Characteristics used
o Flow diagram

• Working of algorithm steps

o Image acquisition
o Image pre-processing
o Gray scale conversion and edge detection
o Image segmentation
o Feature extraction
o Calculation of intensity
o Final decision

• Flow chart for decision making

• K nearest neighbour algorithm
• Project Code snippets
• Conclusion
• Future scope
• References
 Table of Figures

Fig 1. Flow diagram of process

Fig 2. Acquired image
Fig 3. Gray scale image
Fig 4. Identification number
Fig 5. Edge based detection of Mahatma Gandhi
Fig 6. Edge based detection of security thread
Fig 7. Edge based detection of serial number
Fig 8. Flow chart for decision making
Fig 9. KNN algorithm graph
Fig 10. KNN algorithm explained in 4 steps
Fig 11. Project code snapshots
Fig 12. Output of code using test case of 500 Rs
Fig 13. Explanation of audio feature
Fig 14. A blind person using application
 CHAPTER 1:
METHODOLOGY

The system proposed here work here on the image of currency note under ultraviolet light
acquired by a digital camera. The algorithm which is applied here is as follows-
1. Acquisition of image of currency note under ultraviolet light by simple digital camera or
scanner.
2. Image acquired is RGB image and now is converted to grayscale image.
3. Edge detection of whole gray scale image.
4. Now characteristics features of the paper currency will be cropped and segmented.
5. After segmentation, characteristics of currency note are extracted.
6. Intensity of each feature is calculated.
7. If the condition is satisfied, then the currency note is said as original otherwise fake.

In this method, characteristics of currencies are employed which are used by common people
for differentiating for different banknote denomination. The characteristics that can be used to
check the authentication of currency note are-

A. Security Thread
It is a 3mm windowed security thread with inscriptions of India in Hindi, RBI and 2000/500
on banknotes with color shift. Color of the thread changes from green to blue when the note is
tilted.

B. Serial Number
Serial number panel with banknote number growing from small to big on the top left side and
bottom right side.

C. Latent image
A vertical band on front side of denomination at right hand size. It contains latent image
showing numeral of denomination when banknote is held horizontally at eye level.

D. Watermark
The portrait of Mahatma Gandhi, and multidirectional lines and a mark showing the
denominational numeral appear which can be viewed when held against light.
E. Identification Mark A mark with intaglio print which can be felt by touch, helps blind
person to identify the denomination. In 500 denomination the mark is of five lines while in
2000 line the mark is of seven lines.
 CHAPTER 2:
WORKING OF ALGORITHM STEPS:
1) Image acquisition:
The image is kept under ultraviolet light and the image is captured through a simple digital
camera

2) Image pre-processing:
It involves the operations required prior to data analysis and information extraction. Here
image resizing is done.

3) Gray scale conversion and edge detection:

The acquired image is obtained as RGB image which is now converted into gray scale image
since it carries intensity information. This image is further processed and edges of gray scale
images are detected.
4) Image segmentation:
It’s the process of dividing image into multiple parts by cropping it.

5) Feature extraction:
Now the features are extracted using edge based segmentation.

‘
6) Now the process of calculation of intensity of each extracted feature is done. If the calculated
intensity is greater than the threshold of 70%, then it is classified as original note otherwise it
is considered as fake one.

7) The final decision depends upon the intensities of all extracted features.
CHAPTER 3: FLOW CHART FOR DECISION MAKING

Figure 8- flow chart for decision making

CHAPTER 4: k NEAREST NEIGHBOUR ALGO

• K nearest neighbor algorithm is very simple. It works based on minimum distance from
the query instance to the training samples to determine the K-nearest neighbors.

• The data for KNN algorithm consist of several multivariate attributes name that will be
used to classify images.

• K nearest neighbors is a simple algorithm that stores all available cases and classifies
new cases based on a similarity measure (e.g., distance functions). KNN has been used
in pattern recognition.

• The KNN algorithm is a robust and versatile classifier that is often used as a benchmark
for more complex classifiers such as ANN and SVM.

• Despite its simplicity, KNN can outperform more powerful classifiers and is used in a
variety of applications such as economic forecasting, data compression and genetics.
FIGURE 9- KNN algorithm graph
FIGURE 10- KNN algorithm explained in 4 steps
CHAPTER 5: PROJECT CODE SNIPPETS

FIGURE 11- Project code snapshots

FIGURE 12- Output of code using test case of 500 Rs

Figure 13- Explanation of audio feature

CHAPTER 6: Conclusion of the Project
Our project is only a humble venture to satisfy the needs of reducing the circulation of fake
currency and also help the visually impaired persons to manage their currency. Several user-
friendly coding techniques have also been adopted. This package shall prove to be a powerful
package in satisfying all the requirements of the user. The objective of software planning is to
provide a frame work that enables the manager to make reasonable estimates made within a
limited time frame at the beginning of the software project and should be updated regularly as
the project progresses.
At the end it is concluded that we have made effort on following points...
• A technique for verifying India paper currency.
• The approach gives an efficient method of fake currency detection based on physical
appearance.
• The work will surely be very useful for minimizing the counterfeit currency.
• Through this application, we are able to see the missing parameters which the fake note
doesn’t have as compared to the original notes.
• Original Currency being detected using Image Processing Technique.
CHAPTER 7: FUTURE SCOPE of the Project
• In Future, Mobile app can be developed which would be useful for normal as well
as visually impaired persons.

• The same system can be developed for the remaining Indian currency notes and
other country’s currency notes.

• Also, the app interface can be further modified as per the user requirements.

• The app can be integrated with voice simulation

• The app can be provided to leading government official bodies like RBI for
recognising fake notes.

Figure 14- A blind person using application

 CHAPTER 8: REFERENCES
• https://github.com/kashyap07/currency-detector-opencv
• https://www.ijert.org/detection-of-fake-currency-using-image-processing
• https://www.researchgate.net/publication/332140526_Fake_currency_detection_using
_image_processing
• https://www.geeksforgeeks.org/convert-text-speech-python/
• https://getbootstrap.com/
• https://docs.python.org/3/library/

THANK YOU