Paper currency recognition

Paper Currency Recognition System

using Characteristics Extraction and
Negatively Correlated NN Ensemble
Paper currency recognition are
significant in many applications.
The requirements for an automatic
banknote recognition system offered
many researchers to build up a robust
and dependable technique.
Speed and precision of processing are
two vital factors in such systems. Of
course, the precision may be much
significant than the speed.
The designed system should have an
important precision in detecting torn
or worn banknotes.
The currency recognition is one of the
significant application domains of
artificial neural networks.
This paper discusses the ENN for
currency recognition. NCL was used for
the training of the network.
The use of NCL is to produce the
diversity among the individual
networks in ensemble.
The final decision of the network is
taken from voting among the
individual NN.

Literature Review
Presently ,there are a number of methods
for paper currency recognition:
Using symmetrical masks technique
for recognizing paper currency in any
direction.
Other method:
1. The edges of patterns on a paper
currency are spotted.
2. In the next step, paper currency is
divided into N equal parts along
vertical vector.
3. Then, for each edge in these parts
the number of pixels is added and
fed to a three-layer, back
propagation neural network.
4. In this process, to conquer the
problem of recognizing dirty worn

banknotes, the following linear

function is used as a pre-processor:
f(x) = Fax + Fb

(1)

where x is the given (input) image in

gray scale, f(x) is the resultant
image;
and Fa= 3 , Fb = -128
and N
=50
other method use infrared or
ultraviolet spectra may be used for
discriminating between genuine and
counterfeits notes.
Most of paper currency recognition
techniques use a single multilayer
feed-forward NN for the recognition.
These uses edge detection technique
for feature extraction.
This reduces the network size.
For new notes feature extraction from
edge detection is simple. But for the
noisy notes it is very difficult.
If a network takes a false classification
it will be not practical. So a single
network is not reliable enough.
Therefore ENN is presented in this
paper to solve this problem.
Characteristics extraction
Size
The first phase of recognition in the
algorithm considers size of the
banknote.
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.
the size condition in the decision tree
is presented as:
| x x0 |< dx
& | y y0 |< dy
(2)
Where x0 and y0 are size of the
testing paper currency, and x and y
are size of the reference paper
currency.

dx and dy are vertical and horizontal

directions.
Color
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.
Texture
For recognizing the template, Markov
chain concept is used in representing
random phenomenon.
A random process {xk, k = 0, 1, 2....} is
called a Markov chain if the possibility
value in state xn+1 depends on just the
possible value in state xn , that is:
P(xn+1 = | xn = , xn-1 = n-1 ,..,x0 = 0 )
= P(xn+1 = |xn = )
This possibility can be shown by Pij. The
state space of a Markov chain can be
shown in a matrix that is:
p 11

p12 p 1 n
. 2
P= . . pn 1

[ pn n ]
where n is the number of states in the
chain.
Steps for paper currency recognition :
1. Banknote Size is calculated. If its size
satisfies equation (2) it is considered
as a possible true banknote.
2. The banknote image histogram is
calculated.
3. The transition matrices (Nx and Ny)
are calculated then, the main diagonal
elements of the matrices (namely Dx
and Dy) are taken out as a feature for
distinguishing between different
denominations.
4. The paper currency under observation
is assigned to a denomination class if
the Euclidean distances between the
main diagonal elements of its

transition matrices (Dx and Dy) and the

main diagonal elements of the
corresponding matrices of the
reference banknote (DRx and DRy ) are
smaller than a predefined value.
5. At the end, the computed histogram in
stage 2 is compared with the
histogram of the winner class in stage
4. If the Euclidian distance between
the two histograms is larger than the
predefined value, the banknote is
assigned to an unknown class.
An approach using negative
correlation learning
NCL is used for the training of the
network. The use of NCL is to produce
the diversity among the individual
networks in ensemble.
Assume a training set S of size N.
S = {(x (l), d(l), x(2), d(2)),..(x(N),
d(N))}
Where x is the input vector and d is the
desired result.
Consider approximating d by forming an
ensemble whose result F(n) is the
average in the component NN result Fi(n)
M

1
F ( n) = Fi ( n)
M i=1

(5)

Where M and n refer to the number of NN

in ensemble and training pattern,
respectively. The error function Ei of the
network i in NCL is given by the following
eq (6).
N

Ei=

1
Ei ( n )
N i=1

(6)

1
( Fi ( n )d ( n ) ) 2+ 1
2
N

()

1

N i=1

pi ( n )
i=1

(7)

Where Ei(n) is the value of the error

function of the network i for the nth
training pattern. The first term of (7) is
the empirical risk function of the network

i. In the second term, Pi is a correlation

penalty function is given by eq (8).
M

pi ( n ) =( Fi ( n )F ( n ) ) ( Fj ( n )F ( n ))

(8)

j =1

The partial derivative of Ei(n) with

respective to the output network i on the
nth training pattern is
Ei(n)
Pi( n)
=Fi ( n )d ( n ) +
Fi (N )
Fi( N )
M

= Fi ( n )d ( n )+

( F j ( n )F ( n ) )
j 1

= Fi ( n )d ( n )+

( F i ( n )F ( n ))

= (1-) (Fi(n) d(n)) + (F(n)

d(n))
The NCL is a simple extension to the
standard Back-propagation algorithm [8].
In fact, the only alteration that is needed
is to compute an extra term of the form

( F i ( n )F ( n ))
for the ith network. During the training
process, the entire ensemble interacts
with each other through their penalty
terms in the error functions. Each
network i minimizes not only the
difference between Fi(n) and d(n) , but
also the difference between F(n) & d(n).
That is, negative correlation learning
considers errors what all other networks
have learned while training a network.

Comparative study of
different paper currency and
coin recognition method
Currency has great importance in day to
day life so currency recognition is a great
area of interest .We can conclude that

Image abstraction and spiral

decomposition based system (2007)

Obtain abstract image (considering

strong edges) from the original
image.
Features extraction (spiral
decomposition method)
Spiral distribution of pixels is the key
concept that enables the system to
recognize the similarity between a
full color multicomponent coin
images.
No cost in image segmentation.

image processing is the most popular

effective method of currency recognition .
Image processing based currency
recognition technique consists of:
1. Image acquisition (using cameras or
scanners).
2. Pre-processing (features extracting).
3. Recognition of currency.
Currency can be of two types:
1. coin currency.
2. paper currency.

Coin currency recognition

method
Coin recognition by method to designed a
neural network (NN) by using a genetic
algorithm(GA) and simulated annealing.
(2000)

Effective in a small number of input

signals.
Small size neural network is
developed.
Low cost.
Accuracy is 99.68%.

Coin-o-omatic(2006)

Designed to perform reliable

classification of heterogeneous coin
collection.
Uses combination of coin
photographs and sensor information
in classification.
Perform automatic classification of
coin in :
1. Segmentation.
2. Feature extraction (using edge
angle-distance distribution).
3. Pre-selection.
4. Classification (nearest-neighbor).
5. Verification.
Accuracy is 72%.

Image based approach using Gabor

wavelet (2009)

Extract features for local texture

representation.
Divide image into small section
(using concentric ring structure).
Statistics of Gabor coefficients within
each section is concatenated into a
feature vector for whole image.
Matching between two coin image
(via Euclidean distance and nearest
neighbor).
Accuracy of 74.27%.

Paper currency recognition

Paper currency recognition for euro using
three layer perception and radial basis
function (RBF) (2003)

Used three layer perception for

classification and RBF for validation.
RBF network has a potential to reject
invalid data.

Currency recognition using ensemble

neural network (ENN) for TAKA
(bangladesi currency) (2010)

Neural network in ENN is in fact a

classifier trained via negative
correlation learning (NCL).
The currency image converted to
gray scale and then compressed,
each compressed pixel is an input
to the network.
ENN is useful in different types of
currency.

Block LBP(local binary pattern) for

characteristics extraction in paper
currency recognition (2010)

Is improved version of LBP.

Works in two phases:
1. Model creating :
Preparing template.
Features extracting.
2. The verification
High recognition speed.
High classification accuracy.
Side invariance paper currency
recognition based on matching input note
image with database of note image (2012)

Overall process are:

Image acquisition and segmentation.
Dimension matching.
Template matching.
Decision making.

RECENT DEVELOPMENTS IN PAPER

CURRENCY RECOGNITION SYSTEM

Main steps in any currency recognition are:
Imag
e
aqui
stion

Curren
cy
note
localiz
ation(e
dge
detecti

Feat
ure
extr
actin
g

Matc
hing
algo
rith
m

Final output
decision

Image acquisition: getting currency

image by digital camera or scanner.
Edge detection: identifying the points
at which the image brightness
changes sharply.
Image segmentation: dividing the
image into its constituent regions or
object.
Feature extraction: one of challenging
tasks, identify the unique and
distinguishing features of each
denomination under condition like old
,torn and worn notes.
Matching algorithm: classifies the
currency notes.

Potential applications
1. Assisting blind and visually impaired
people.
2. Distinguishing original note from
counterfeit currency.
3. Automatic selling goods.
4. Banking service and applications.

Related work
Image acquisition : is the creation of
digital image.
Image pre-processing: Enhance some
image features
1. Image adjusting: reducing the
image size.
2. Image smoothening: by applying
mask on the image higher is the
size of mask, more is the
smoothing.

Edge Detection: is the fundamental

tool in feature detection and
extraction, reflects sharp intensity in
colors and identifies object boundaries
using Sobel,Prewitt,Robert and Canny.
Canny is more powerful as it can
detect true weak edges.
Boundary Subtraction: detect and
recognize the note, black pixels
touching the boundary of the image
were regarded as background, as note
had a white background.
Feature Extraction: includes feature of
serial numbers of currency
notes,effects on design and
performance of the classifier.
Evaluation algorithm: after getting
features of currencies which then will
be recognized by effective recognition
system called classifier, one of the
most common techniques is Artificial
Neural Network (ANN).
o The Neural Network (NN)
consists of three layers: input
layers, hidden layers and output
layers.
o Acquired EGB image convert to
gray scale.
o Edge detection done on whole
gray scale.
o Paper currency characteristics
are cropped and segmented,
and then extracted.
o Comparing these with the
original pre-stored image in the
system.
o If matching it is genuine
otherwise it is counterfeit.
o The neural network evaluate the
hue and saturation threshold of
input image ,if the Neural
Network threshold is less than
current image threshold it is
genuine otherwise it is
counterfeit.

Other work (2011)

They used image histogram based
on plenitude of different colors of

notes calculated and compared with

reference note.
Also they used Markov chain
concept to model texture of paper
currency as a random process.
Finally they used Ensemble Neural
Network (ENN) with negative
correlation in classification.
ENN has better performance than
single network.

Discussion
Artificial Neural Network based
currency classification is the most
frequently used method like Feed
Forward Network, Back Propagation
Neural Network, RBF network and
ENN.
There are also some models
developed by researchers like
Markov chain.

A NOVEL PAPER CURRENCY

RECOGNITION USING FOURIER
MELLIN TRANSFORM, HIDDEN
MARKOV MODEL AND SUPPORT
VECTOR MACHINE
The needs for an automatic banknote
recognition system encouraged many
researchers to develop fast, accurate,
reliable and robust technique which also be
able to adapt to high noise.this task can be:
1. Extracting features from paper
currency images that vary from
each denomination.
2. Using these features in an
intelligent system for recognition.
Recognition systems should be able to
recognize paper currency from each side
and torn or worn banknotes.
these systems depends on currency note
characteristics.
This paper presents a new paper currency
recognition technique that independent to
the number of paper currency classes using
texture characteristics of paper currency.

Texture modeled using Hidden Markov

Model(HMM).
Existing paper currency methods:
Recognition paper currency in any
direction using symmetrical masks:
o Compute sum of non-masked
pixels value and fed to a neural
network.
o Uses two sensors one for front
and the other for back of paper
currency, but only the front
image is the criterion for
decision.
Other research:
o Detect edge of patterns on
paper currency.
o Divide paper currency into N
equal parts vertically.
o For each edge of parts number
of pixels counted and fed to a
three-layer, back propagation
neural network.
o Overcoming the dirty worn
banknotes by function:

f(x) = Fax+Fd
where x is the input image in gray
scale, f(x) is the output image and
selecting

Fa=3,
N=50

Fd=-128,

Wiener filter
It is a filter used to reduce the effect of dirt
through improving image lightness.
Wiener filter estimate local mean and
variance around each pixel as:

1
MN

2=

(n 1, n2)

n 1,n 2 ( N xM )

1
MN

2 ( n 1, n 2 )2

n 1,n 2 (N xM )

where is the N-by-M local neighborhood

of each pixel in the image then,a pixel-wise
wiener filter using above estimation has
been created:

b(n1, n 2)=+

2v 2 (
[ n 1, n 2 ) ]
2

Where v2 is the noise variance. if the noise

variance not given wiener uses the average
of all estimated variance.

(a)

its resulting spectrum is invariant in

rotation, translation and scale.
The Fourier Transform (FT) itself is
translation invariant and its conversion to
log-polar coordinates converts the scale
and rotation differences to vertical and
horizontal offsets that can be measured.
A second FFT, called the Mellin transform
gives a transform-space image that is
invariant to translation, rotation and scale .
For an input image, I[m,n], the FourierMellin transform is defined as below:

m =0 n=0

m 0=

N
N
, n0 = for N odd
2
2

m 0=

( N 1)
(N 1)
,n 0=
for N
2
2

(b)

(a)
(c)

(b)
(d)
Fig 1:
Using the Wiener filter to reduce the dirt
from the worn banknote.
a)Original image before filtering,
b)Obtained image after filtering.
c)Worn image before filtering
d)Worn image after filtering.
Fourier-mellin Transform
It is a powerful tool for image recognition
as:

2
2
( km ) j( ) ( ln )
(
M)
e N
|F {I [ m , n ] }|=|F [ k , l ]|= I [ m, n ] e
M1 N 1

(c)
Fig 2:
Using the Fourier-Mellin transform to reduce
the effect of rotation of the banknote:
a) Original image,

b) Rotated image
c) Output image after applying FourierMellin transform.
Hidden Markov Model (HMM)
By using the hidden Markov Model the
texture of a banknote is modeled as a
random process.
A random process { x n ,n=0,1,2, .. } is
called a Markov chain if the possibility
value in state x n+1 depends on just the
possible value in state x n that is:
p 11

p 12 p 1 n p 21
p 22 p 2 n
.
.
.

.
P=

.
[ pn 1 pn 2 pnm ]
Where n is the number of states in a chain.
In a discrete time Markov chain, the
possibility value of different states in the
matrix is computed as follow:
pij =

nij
n

nik
k=1

Where nij is the number of transitions

from state i to state j. Considering the
above equation , matrix can be multiplied
n

by the factor

n ik
k=1

In order to obtain the below equation, this

matrix is used to differentiate between
textures in different denominations. We can
scan the banknotes from top to bottom and
from left to right to obtain the transition
matrix across the row (Nx) and across the
column (Ny)

N=

pij nik
k=1

N 11

N 12 N 1n N 21
N 22 N 2n
.
.
.

.
[ Nn 1 Nn 2 Nnm ]

An image is recognized by the value of its

pixels at different places, the way that
adjacent pixels vary can also be used to
distinguish different images. Considering a
paper currency image as an l mxn matrix
that is shown in table1, the value of each
pixel like ij can be considered as one state.
It is clear that using the lower numbers of
gray scales leads to a lower computational
load. Therefore, in this paper the main
diagonal values of the matrix N have been
used. Each element of the main diagonal
value represents the number of times that
the corresponding value repeated in
adjacent pixels. The transition matrix (N)
for a 5 euro banknote shown in Figure 3
that has been quantized in 11 level gray
scales is shown in Table 1. In this table, for
example, the 39 represents the number of
times the values of adjacent pixels are
between 0 and 22. Our investigations
indicate that the main diagonal values are
sufficient to distinguish different
denominations. The main diagonal values
of seven different euro banknotes are
illustrated in Table 2. As it shows, all of the
banknotes are distinguishable using the
main diagonal value. It should be noted
that the dominant colors of the banknote is
recognizable using the main diagonal
values. Our investigations indicate that
using the main diagonal values is robust
against worn banknotes. To show the
robustness of this feature, the main
diagonal values of clean and dirty 5 euro
banknote are shown in table3. Because of

the monotonic impurity in dirty banknotes,

the effect of the impurity on the main
diagonal values is negligible.

19

49

51

222

340
6
486
198

467

213

126

26

75
46

186
0
256
107

6
1

52
5

26
13

26
23

793
634

48

67

198

409

16

21

38

331
209
8
376
9
103

39
60

17

675
672
6
197
8
67

15

Fig 3: Image of 5 Euro banknote

Table 1.
Transition matrix for a 5 Euro banknote
45
19
16
8
7
5
5
35
402 238 50
38
25
9
9
235 871 356 114 90
48
7
50
337 155 459 183 116
3
3
29
150 556 193 700 231
8
2
26
59
157 876 707 172
7
6
5euro
45
402 871
1553
1938
10euro
0
35
609
585
512
20euro
9
451 1359
461
1007
50euro
0
261 985
777
2122
100euro 0
119
1405
910
1430
200euro 0
83
811
768
678
500euro 0
98
1255
876
1429

4
16
25
39

4
21
15
33

0
4
9
17

0
0
5
5

100

74

35

12

240

125

70

28

7077
2284
4821
4753
2503
913
2615

Table 2.
Transition matrix for 7 types Euro banknotes
Original 45
402
871
1553
1938
7077
5 euro
Dirty 5
39
398
813
1456
1892
6981
euro
Table 3.
Transition matrix for original 5 Euro and dirty 5 euro

3406
2646
2025
6051
5725
1605
8082

793
6804
5372
6806
5648
3287
2457

6726
12852
11825
19935
8204
5160
2412

3769
2760
245
16754
1427
15485
8895

49
5
8
19969
34
90
63

3406

793

6726

3769

49

3355

721

6451

3689

24

Finally from the four paper I have read I found:

Currency denomination recognition is one the active research topics at present , and this
wide interest is due to:
Monetary transaction is an integral part of our day to day activities.
blind people particularly suffer in monetary transactions.
They are not able to effectively distinguish between various denominations and are
often deceived by other people.
Also there are many applications that depends on currency recognition like:
1. Assisting visually impaired people2. Distinguishing original note from counterfeit currency3. Automatic selling-goods4. Banking Applications Paper currency are coins or paper.
paper is significant rather than coins as they become old early.
Methodology of any currency recognition system the main steps :

80
49

Image
aquistion

Currency note
localization(edge
detection and
segmentation

Feature
extracting

Matchin
g
algorith
m

Final output
decision

Most of matching algorithm used Artificial Neural Network specially Ensemble Neural
Network as its better performance than single Neural Network.
Also the most common model technique is the Markov Chain.