Technical Seminar On

UNDERSTANDING THE MECHANISAM OF AI IN

IMAGE GENERATION

Submitted to

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,

HYDERABAD

In partial fulfillment of the requirement for the award of degree of

BACHELOR OF TECHNOLOGY
In

Computer Science and Engineering

By

S.PRAVEEN

[21AP1A0532]

Under the guidance of

MS. MADIHA SAMREEN

Assistant Professor

Department of Compute Science Engineering

AAR MAHAVEER INSTITUTE OF SCIENCE AND TECHNOLOGY

(Affiliated to JNTU Hyderabad, Approved by AICTE)

Vyasapuri, Bandlaguda, Post: Keshavgiri, Hyderabad-500 005

DEPARTMENT OF COMPUTER SCIENCE AND ENGINEERING

 Technical Seminar On

SCALABILITY AND COMPUTATIONAL LIMITATIONS

IN MACHINE LEARNING
Submitted to

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,

HYDERABAD

In partial fulfillment of the requirement for the award of degree of

BACHELOR OF TECHNOLOGY
In

Computer Science and Engineering

By

N. SAMPATH KUMAR

[21AP1A0520]

Under the guidance of

MS. MADIHA SAMREEN

Assistant Professor

Department of Compute Science Engineering

AAR MAHAVEER INSTITUTE OF SCIENCE AND TECHNOLOGY

(Affiliated to JNTU Hyderabad, Approved by AICTE)

Vyasapuri, Bandlaguda, Post: Keshavgiri, Hyderabad-500 005

DEPARTMENT OF COMPUTER SCIENCE AND ENGINEERING

 Technical Seminar On

REAL-WORLD APPLICATIONS OF DATA

ANALYTICS IN MACHINE LEARNING

Submitted to

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,

HYDERABAD

In partial fulfillment of the requirement for the award of degree of

BACHELOR OF TECHNOLOGY
In

Computer Science and Engineering

By

S.SATYAVENI

[21AP1A0529]

Under the guidance of

MS.MADIHA SAMREEN

Assistant Professor

Department of Compute Science Engineering

AARMAHAVEER INSTITUTE OF SCIENCE AND TECHNOLOGY

(Affiliated to JNTU Hyderabad, Approved by AICTE)

Vyasapuri, Bandlaguda, Post: Keshavgiri, Hyderabad-500 005

DEPARTMENT OF SCIENCE AND TECHNOLOGY

 TABLE OF CONTENTS

1. Introduction 7
1.1 Existing System ............................................................ 10
1.2 Proposed System… ....................................................... 12
1.3 System Architecture ....................................................... 13
2. Literature Survey 15
3. System Requirements 18
3.1 Software Requirements… ................................................. 18

3.2 Hardware Requirements…............................................. 19

3.3 Software Tools Used… ................................................. 21
3.3.1 Python… ..................................................................... 21
3.3.2 Google Collab ............................................................. 22
3.3.3 VS Code ...................................................................... 22
4 System Design 23
4.1 System Architecture......................................................... 23
4.2 Data Flow Diagram ......................................................... 25
4.3 UML Diagrams……………………………….… 27
5 Testing and Results 29
5.1 Levels Of Testing……….………………………… 29
5.2 Implementation ................................................................32
5.3 Output… .......................................................................... 37
6 Conclusion and Future Scope 38
6.1 Conclusion…………………………………………. 38
6.2 Future Scope……………………………………….. 38
References 39

DEPARTMENT OF SCIENCE AND TECHNOLOGY

 LIST OF FIGURES

Figure 4.1 System Design 21

Figure 4.2 Use Case Diagram 23

Figure 4.3 Class Diagram 23

Figure 4.4 Sequence Diagram 23

Figure 4.5 Collaboration Diagram 23

DEPARTMENT OF SCIENCE AND TECHNOLOGY

 1.INTRODUCTION

The *Currency Recognition System using Image Processing* is designed to automatically

identify and classify currency denominations from digital images. With the increasing
demand for automation and the need for accessible solutions, such a system has applications in
various fields including banking, retail, and assisting visually impaired individuals.
Traditional currency recognition methods rely on human verification, which can be time-
consuming and prone to errors. This project aims to leverage modern image processing and
machine learning techniques to recognize different currencies with high accuracy, regardless
of the image's lighting, angle, or condition of the currency.

The system processes currency images through various stages: acquisition, preprocessing,
feature extraction, and classification. By applying methods like edge detection, keypoint
extraction, and advanced algorithms such as Convolutional Neural Networks (CNNs), it can
effectively differentiate between different denominations and types of currency. This project
not only simplifies tasks such as currency exchange or ATM verification but also paves the
way for real-time, accessible tools for users with visual impairments..

In today's fast-paced world, the ability to recognize and process currency efficiently is vital
for various applications, including retail, banking, and automated vending systems. With the
advent of technology, traditional methods of currency validation and recognition have evolved
into sophisticated systems that leverage image processing and machine learning techniques.
This project aims to develop a robust currency recognition system utilizing image processing
to accurately identify and classify various denominations of banknotes.

Currency recognition is crucial not only for businesses that deal with cash transactions but
also for enhancing the accessibility of financial services. Individuals with visual impairments,
for example, benefit significantly from currency recognition systems that provide them with
the ability to identify notes independently. Furthermore, in regions where counterfeit currency
poses a significant risk, reliable recognition systems can play a critical role in fraud
prevention, thereby bolstering public confidence in the financial system.

DEPARTMENT OF SCIENCE AND TECHNOLOGY

Importance of Currency Recognition

• Currency recognition is crucial not only for businesses that deal with cash transactions but
also for enhancing the accessibility of financial services. Individuals with visual
impairments, for example, benefit significantly from currency recognition systems that
provide them with the ability to identify notes independently. Furthermore, in regions where
counterfeit currency poses a significant risk, reliable recognition systems can play a critical
role in fraud prevention, thereby bolstering public confidence in the financial system.
Technological Foundations

• The backbone of this project is image processing, a field that focuses on the manipulation
and analysis of images through computational techniques. By employing algorithms that
enhance image quality, extract meaningful features, and classify data, we can create a system
capable of discerning various currency notes under differing conditions.
• Key technologies involved include:
• Computer Vision: Techniques that allow machines to interpret and process visual data from
the world, enabling them to recognize objects—such as currency notes—based on their visual
characteristics.
• Machine Learning: Algorithms that enable the system to learn from data and improve over
time. By training models on labeled currency images, the system can become proficient in
recognizing different denominations.
• Deep Learning: A subset of machine learning that uses neural networks to analyze complex
patterns in data. Convolutional Neural Networks (CNNs), in particular, have shown remarkable
success in image recognition tasks and are instrumental in developing an efficient currency
recognition system.

DEPARTMENT OF SCIENCE AND TECHNOLOGY

Project Overview
• The primary goal of this project is to design an automated currency recognition system that
can accurately identify various denominations of banknotes using image processing
techniques. The system will encompass several stages:
• Image Acquisition: Capturing high-quality images of currency notes using cameras or
smartphones.
• Pre-processing: Enhancing the images to improve recognition accuracy, including
noise reduction and contrast enhancement.
• Feature Extraction: Identifying key features in the currency images that differentiate
one denomination from another.
• Classification: Employing machine learning algorithms to categorize the currency
notes based on the extracted features.
• User Interface: Developing an intuitive interface that provides real-time recognition
feedback, enabling users to interact seamlessly with the system.

Challenges and Solutions

The development of a currency recognition system presents several challenges:

• Variability in Currency Design: Different countries and regions have unique currency
designs, and even within a single currency, there may be multiple versions. This variability
necessitates a diverse dataset for training the recognition model.
• Lighting Conditions: The performance of the system can be significantly affected by changes
in lighting. Implementing robust pre-processing techniques can help mitigate these effects.
• Counterfeit Detection: Beyond simple recognition, the system could incorporate features that
detect counterfeit notes, adding an additional layer of utility.

DEPARTMENT OF SCIENCE AND TECHNOLOGY

1.1 EXISTING SYSTEM.

• Several existing systems and technologies address currency recognition, leveraging image
processing, machine learning, and other techniques to automate the identification and
verification of banknotes. Here’s an overview of some notable systems and approaches
currently in use:
• Commercial Currency Validators
• Many banking and retail industries rely on commercial currency validation machines. These
devices utilize optical sensors and sophisticated algorithms to detect and authenticate
banknotes. Key features include:
• Infrared and UV Scanning: These machines often employ infrared and ultraviolet light to
detect security features in banknotes, such as watermarks and security threads.
• Size and Shape Measurement: They assess the dimensions and shape of notes to verify
authenticity against predefined standards.
• While effective, these systems are typically limited to specific denominations.
1. Mobile Applications
• A growing number of mobile applications leverage smartphone cameras for currency
recognition, catering to various user needs, such as aiding visually impaired individuals.
Examples include:

• Currency Recognition Apps: Apps like “Cash Reader” and “Seeing AI” utilize image
processing techniques to recognize and announce currency denominations.
• User-Friendly Interfaces: These apps are designed with accessibility in mind, featuring
voice recognition and audio feedback to assist users in identifying notes.
• While convenient, the performance of these applications can vary significantly based on the
quality of the camera and the lighting conditions.

2. Open Source Projects

• There are several open-source initiatives aimed at currency recognition that provide valuable
insights and frameworks for developing custom solutions. Notable examples include:

DEPARTMENT OF SCIENCE AND TECHNOLOGY

 • OpenCV: This widely-used library offers numerous functions for image processing, making it
a solid foundation for developing currency recognition systems. It includes algorithms for
feature detection, image enhancement, and contour analysis.
• TensorFlow and PyTorch: These deep learning frameworks are often employed in projects that
utilize neural networks for image classification, allowing developers to train models for
recognizing different currency denominations.

4. Research Prototypes
• Numerous academic research projects focus on currency recognition using advanced
techniques, such as:

• Convolutional Neural Networks (CNNs): Researchers have demonstrated the effectiveness

of CNNs for currency classification tasks, achieving high accuracy rates by training models on
large datasets of currency images.
• Hybrid Approaches: Some studies combine traditional image processing techniques with
machine learning models to improve robustness against variations in lighting, orientation, and
quality of images.
• These prototypes contribute to the academic understanding of image recognition and offer
frameworks that can be adapted for practical applications.
5. Counterfeit Detection Systems
• Beyond simple recognition, some systems focus on identifying counterfeit notes. These
typically incorporate:

• Multi-Spectral Imaging: By capturing images at different wavelengths, these systems can

analyze hidden security features that are not visible under normal lighting conditions.
• Machine Learning for Anomaly Detection: Advanced algorithms can be trained to recognize
subtle differences between authentic and counterfeit notes based on a variety of features.
• Such systems are essential for financial institutions and retailers to mitigate the risks
associated with counterfeit currency.
Limitations of Existing Systems

• Despite advancements, current systems face several limitations:

• Adaptability: Many commercial validators are designed for specific currencies and may not
be easily updated for new designs or denominations.

DEPARTMENT OF SCIENCE AND TECHNOLOGY

 • Environmental Sensitivity: Mobile applications and other systems can struggle with
variations in lighting, angles, and image quality, affecting recognition accuracy.
• Cost: High-quality commercial currency validation machines can be prohibitively expensive
for smaller businesses or individuals.

1.2 PROPOSED SYSTEM

• The proposed currency recognition system aims to develop an efficient, accurate, and user-
friendly solution for identifying and classifying various denominations of banknotes using
advanced image processing and machine learning techniques. The system will address the
limitations of existing solutions while providing additional features to enhance user
experience and accuracy.
Objectives

• High Accuracy: Achieve high recognition accuracy for different currency denominations
under various conditions.
• Real-Time Processing: Enable real-time currency recognition using mobile devices or
standalone systems.
• User-Friendly Interface: Design an intuitive interface that provides clear feedback and
interaction for users, including accessibility features for visually impaired individuals.
• Adaptability: Allow the system to easily update and incorporate new currency designs and
denominations.
• Counterfeit Detection: Implement features for detecting counterfeit currency, enhancing
security.

DEPARTMENT OF SCIENCE AND TECHNOLOGY

1.3 System Architecture
• The proposed system can be divided into several key components:
• Image Acquisition
• Hardware: Utilize high-resolution cameras (smartphones or dedicated cameras) to capture
images of banknotes from various angles and lighting conditions.
• Input Method: Allow users to take photos or use a live camera feed for real-time recognition.
• Pre-processing Module
• Image Enhancement: Apply techniques such as histogram equalization, noise reduction, and
contrast adjustment to improve image quality.
• Binarization: Convert the images to binary format to facilitate contour detection and feature
extraction.
• Feature Extraction
• Contour Detection: Use edge detection algorithms (e.g., Canny) to identify the contours of
the banknotes.
• Keypoint Detection: Implement feature detection algorithms like SIFT, SURF, or ORB to
extract distinctive features from the currency images.
• Template Matching: Create templates for each denomination and employ template
matching to find similarities.
• Classification Module
• Machine Learning Model: Train a Convolutional Neural Network (CNN) on a diverse
dataset of currency images to classify different denominations accurately.
• Transfer Learning: Utilize pre-trained models to enhance performance, especially
when the dataset is limited.
• Multi-class Classification: Ensure the model can distinguish between multiple currencies
and denominations.
• Post-processing
• Verification: Cross-check the recognized denomination against a database to ensure
accuracy and flag potential mismatches.
• User Feedback: Provide real-time audio or visual feedback indicating the recognized
currency, with options for user confirmation.
• User Interface
• Design: Create an intuitive interface that is easy to navigate, featuring clear buttons for
image capture, currency recognition, and settings.
• Accessibility Features: Incorporate voice feedback and haptic responses for users with
visual impairments.
• Counterfeit Detection
• Anomaly Detection Algorithms: Implement machine learning algorithms to analyze
features that may indicate counterfeit notes.
• Multi-Spectral Analysis: Explore the possibility of using multi-spectral imaging to detect
hidden security features in banknotes.

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Implementation Plan

• Data Collection: Gather a diverse dataset of currency images, including different

denominations, conditions, and angles.
• Model Training: Develop and train the machine learning model using the collected
dataset, fine-tuning it for optimal accuracy.
• System Integration: Integrate all components into a cohesive system, ensuring seamless
communication between the modules.
• Testing and Evaluation: Conduct extensive testing under various conditions to evaluate the
system's performance and accuracy.
• User Testing: Gather feedback from potential users, particularly individuals with visual
impairments, to refine the user interface and functionality.
• Deployment: Launch the system on mobile platforms (iOS and Android) and potentially as
a standalone application.

Expected Outcomes

• Increased Accuracy: Improved recognition rates compared to existing systems, even under
challenging conditions.
• Enhanced User Experience: A user-friendly interface that is accessible to a wide range of
users, including those with disabilities.
• Adaptability to New Currencies: A system capable of quickly integrating new currency
designs and denominations, ensuring long-term relevance.
• Counterfeit Detection: An additional layer of security that helps users identify potentially
counterfeit notes.

DEPARTMENT OF SCIENCE AND TECHNOLOGY

 2. LITERATURE SURVEY

The field of currency recognition using image processing and machine learning has evolved
significantly, influenced by advancements in computer vision, artificial intelligence, and mobile
technology. This literature survey examines key studies, methodologies, and technologies that have
contributed to the development of effective currency recognition systems.
1. Image Processing Techniques
• Many researchers have focused on the application of traditional image
processing techniques for currency recognition.
• Feature Extraction: Studies such as those by Bansal and Choudhary (2017)
emphasize the importance of feature extraction methods, including edge detection
and contour analysis, using algorithms like Canny edge detection and Hough
transforms. These techniques are fundamental in identifying the shape and
characteristics of banknotes.
• Template Matching: Works like those by Wu et al. (2018) utilize template
matching for recognizing specific banknote features. By creating templates of
currency notes, these systems can compare captured images to templates to
determine the denomination.

2. Machine Learning Approaches

• The integration of machine learning has revolutionized currency recognition,
allowing for improved accuracy and adaptability.
• Convolutional Neural Networks (CNNs): Research by Ahmed et al. (2019)
demonstrated the effectiveness of CNNs in image classification tasks, achieving
high accuracy in recognizing various currency denominations. CNNs excel in
learning spatial hierarchies of features, making them particularly suitable for
image recognition.
• Transfer Learning: Several studies, including those by Zhang et al. (2020), have
explored transfer learning to leverage pre-trained models on large datasets,
thereby improving the performance of currency recognition systems even with
limited training data. This approach reduces the computational burden and
accelerates the training process.

DEPARTMENT OF SCIENCE AND TECHNOLOGY

 • With the proliferation of smartphones, numerous mobile applications have
emerged for currency recognition.
• Accessibility: Applications like "Cash Reader" and "Seeing AI" utilize
smartphone cameras to identify banknotes and provide audio feedback for
visually impaired users. Research by Pohl et al. (2021) highlights the importance
of designing user-friendly interfaces that cater to diverse user needs.
• Challenges in Mobile Recognition: Studies have identified challenges such as
variations in lighting and image quality that affect recognition accuracy. Solutions
involve implementing robust pre-processing techniques and optimizing
algorithms for real-time performance (Hussain et al., 2022).
3. Counterfeit Detection
• Counterfeit currency poses a significant challenge, prompting research into
systems that can distinguish between authentic and fake notes.
• Multi-Spectral Imaging: Research by Sinha and Chowdhury (2019) explored
the use of multi-spectral imaging to identify security features in banknotes that
are not visible under standard lighting. This approach enhances the ability to
detect counterfeit notes effectively.
• Anomaly Detection Algorithms: Some studies have focused on employing
machine learning algorithms for anomaly detection, identifying subtle
differences between authentic and counterfeit currency based on various
features (Rai et al., 2023).
4. Real-World Implementations
• Several projects and systems have been developed and tested in real-world
scenarios, showcasing the practical applications of currency recognition
technology.
• Commercial Solutions: Companies like Glory Global Solutions and Crane
Payment Innovations have developed advanced currency validation machines that
utilize a combination of optical recognition and machine learning techniques to
authenticate banknotes in retail and banking environments.
• Academic Projects: Various academic institutions have implemented prototype
systems that integrate different methodologies for currency recognition,
contributing to the body of knowledge in this field. These projects often focus on

DEPARTMENT OF SCIENCE AND TECHNOLOGY

 addressing specific challenges, such as adaptability to new currency designs and improving recognition
rates under varying conditions.

6. Summary of Findings
• The literature indicates a trend toward integrating advanced machine learning
techniques, particularly deep learning, into currency recognition systems. The
use of CNNs and transfer learning has significantly improved accuracy and
adaptability. However, challenges remain, including the need for robust
systems that can operate in diverse environments and the ongoing threat of
counterfeit currency.

DEPARTMENT OF SCIENCE AND TECHNOLOGY

 3. SYSTEM REQUIREMENTS

3.1 SOFTWARE REQUIREMENTS

1. Development Environment

• Programming Language:
1. Python
• IDE or Text Editor:
1. PyCharm
2. Jupyter Notebook
3. Visual Studio Code

2. Image Processing Libraries

• OpenCV
• Pillow

3. Machine Learning Libraries

• TensorFlow
• Keras
• scikit-learn:

4. Data Handling and Visualization

• NumPy
• Pandas
• Matplotlib
• Seaborn

5. Database Management

• SQLite or PostgreSQL
• SQLAlchemy

6. Version Control and Collaboration

• Git
• GitHub or GitLab

7. Deployment Tools

• Flask or Django
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 • Docker

8. Testing Frameworks

• pytest
• unittest

9. Accessibility Features

• Speech Recognition Libraries

10. Documentation Tools

• Sphinx

3.2 HARDWARE REQUIREMENTS

1. Camera

• High-Resolution Camera:
o Type: A smartphone camera (with at least 12 MP) or a dedicated high-
resolution webcam/digital camera.
o Purpose: To capture clear images of banknotes for accurate recognition.
The camera should support good low-light performance to handle various
lighting conditions.

2. Processing Unit

• Computer/Server Specifications:
o CPU: Multi-core processor (e.g., Intel i5 or better) for efficient data
processing and model inference.
o RAM: At least 8 GB, preferably 16 GB or more, to handle large datasets
and enable smooth multitasking during image processing and model
training.
o GPU:For training deep learning models, a dedicated GPU (e.g., NVIDIA
GeForce GTX 1060 or better) is recommended to significantly speed up
training times.

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3. Storage

• Hard Drive/SSD:
o Type: Solid State Drive (SSD) is preferred for faster read/write speeds,
especially during model training and data loading.
o Capacity: At least 256 GB, though 512 GB or more is recommended to
accommodate datasets, models, and application files.
4. User Interface

• Touchscreen Monitor (Optional):

o For an interactive user interface, a touchscreen monitor can enhance user
experience, especially for standalone applications.
• Audio Output Device:
o Speakers or headphones for audio feedback, particularly beneficial for
users with visual impairments.

5. Power Supply

• UPS (Uninterruptible Power Supply):

o To ensure the system remains operational during power outages, especially
for deployed systems in commercial settings.

6. Network Requirements

• Internet Connection:
o A stable internet connection may be required for cloud-based model
training, data storage, or updates (if applicable).
7. Mobile Device (if applicable)

• Smartphone/Tablet:
o If developing a mobile application, ensure compatibility with iOS (iPhone
7 or later) and Android devices (Android 8.0 or later).
o Features: Devices should have a good camera, sufficient RAM (at least 4
GB), and adequate processing power for real-time image recognition.

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3.3 SOFTWARE TOOLS USED

3.3.1 Python

Python is an interpreted, object-oriented, high-level programming language with dynamic semantics.

Python is simple and easy to learn. Python supports modules and packages, which encourages program
modularity and code reuse. The Python interpreter and the extensive standard library are available in
source or binary form without charge for all major platforms, and can be freely distributed. Often,
programmers fall in love with Python because of the increased productivity it provides. Since there is
no compilation step, the edit-test-debug cycle is incredibly fast.
Debugging Python programs are easy and a bug or bad input will never cause a segmentation fault.
Instead, when the interpreter discovers an error, it raises an exception. When the program doesn't catch
the exception, the interpreter prints a stack trace. A source level debugger allows inspection of local and
global variables, evaluation of arbitrary expressions, setting breakpoints, stepping through the code a
line at a time, and so on. The debugger is written in Python itself, testifying to Python's introspective
power. The Proposed System works on python 3.5 and above.

DEPARTMENT OF SCIENCE AND TECHNOLOGY

3.3.2 Google Collab

Google Colab is a free, cloud-based platform for data science and machine learning development. It
provides a Jupyter Notebook interface, 12 hours of runtime per session, 50 GB of disk space, and pre-
installed libraries like TensorFlow and PyTorch. With GPU acceleration and real-time collaboration,
Colab enables fast prototyping, easy sharing, and cost-effective development. Ideal for data science,
machine learning, and deep learning projects, Colab integrates seamlessly with Google Drive,
allowing users to access and share notebooks effortlessly. Its limitations include a 12-hour session
limit and restricted disk space, but overall, Google Colab streamlines data science workflows, making
it an indispensable tool for professionals and enthusiasts alike.

3.3.3 VS Code

Visual Studio Code is a lightweight but powerful source code editor which runs on your desktop and is
available for Windows, macOS and Linux. It comes with built-in support for JavaScript, TypeScript and
Node.js and has a rich ecosystem of extensions for other languages (such as C++, C#, Java, Python,
PHP, Go) and runtimes (such as .NET and Unity). Visual Studio Code is a freeware source-code editor
made by Microsoft for Windows, Linux and macOS.

DEPARTMENT OF SCIENCE AND TECHNOLOGY

 4. SYSTEM DESIGN

The system design for a currency recognition system involves outlining the architecture,
components, data flow, and user interactions. This section provides a comprehensive overview of
the system's design, focusing on its modular structure and integration of various technologies.

4.1. System Architecture

• The proposed currency recognition system consists of several key components
organized into a layered architecture:
• User Interface Layer
1. Mobile Application/Web Interface: A user-friendly interface that allows
users to capture images of banknotes, view recognition results, and receive
feedback.
• Application Logic Layer
1. Image Acquisition Module: Captures images from the camera.
2. Pre-processing Module: Enhances image quality through noise reduction,
resizing, and binarization.
3. Feature Extraction Module: Identifies key features using edge detection
and keypoint extraction techniques.
4. Classification Module: Utilizes machine learning models to classify the
currency based on extracted features.
• Data Storage Layer
1. Database: Stores user data, recognized currency information, and model
parameters.
• Integration Layer
1. APIs: Facilitates communication between the user interface and backend
processing modules.

DEPARTMENT OF SCIENCE AND TECHNOLOGY

 FIGURE 4.1:System Design

Component Descriptions
1. User Interface Layer
• Functionality: Provides an interactive platform for users to upload images, view
results, and interact with the system.
• Design Considerations:
1. Accessibility features (e.g., voice feedback).
2. Simple navigation and clear instructions for capturing images.
3. Image Acquisition Module
• Components:
1. Camera interface (smartphone or webcam).
• Functionality: Captures images of banknotes in various orientations and lighting
conditions.
1. Pre-processing Module
• Processes:
1. Image Enhancement: Adjusts brightness, contrast, and sharpness.
2. Noise Reduction: Applies filters to minimize noise.
3. Binarization: Converts the image to a binary format for easier analysis.
• Tools: OpenCV functions for image manipulation.
1. Feature Extraction Module
• Techniques:
1. Edge Detection: Uses Canny edge detection to find the edges of the
banknote.
2. Contour Detection: Identifies contours that define the note’s boundaries.
3. Keypoint Extraction: Utilizes algorithms like SIFT or ORB to extract
distinctive features.
• Output: A set of features that represent the captured banknote.
DEPARTMENT OF SCIENCE AND TECHNOLOGY
 1. Classification Module
• Machine Learning Model:
1. CNN Architecture: A Convolutional Neural Network trained to recognize
and classify different banknote denominations.
• Training: The model is trained on a large dataset of currency images to learn
features associated with each denomination.
• Output: The predicted denomination of the currency based on the extracted
features.
1. Counterfeit Detection Module
• Methods:
1. Analyzes security features (e.g., watermarks, UV patterns) to detect
counterfeit notes.
2. Uses anomaly detection techniques to identify discrepancies in features.
• Output: A determination of whether the note is genuine or counterfeit.
1. Data Storage Layer
• Database:
1. SQLite or PostgreSQL: For storing user data, recognition results, and
model metadata.
• Structure:
1. Tables for user information, currency details, and model performance
metrics.
2. Integration Layer
• APIs:
1. RESTful APIs to facilitate communication between the frontend and
backend components.
2. Handles requests for image processing, recognition results, and user data
retrieval.

4.2 Data Flow Diagram

• A simple data flow diagram (DFD) can illustrate the interaction between
components:
• User captures an image using the mobile app or web interface.
• Image is sent to the Image Acquisition Module.
• Pre-processing occurs, enhancing the image quality.
• Features are extracted from the pre-processed image.
• The extracted features are sent to the Classification Module for recognition.
• The recognition result is returned to the user interface, along with any
counterfeit detection findings.
DEPARTMENT OF SCIENCE AND TECHNOLOGY
 FIGURE 4.2: Use Case Diagram

User Interaction Workflow

• Image Capture: User opens the app and captures a photo of the banknote.
• Processing: The app processes the image, enhancing it and extracting features.
• Recognition: The system classifies the note and checks for counterfeits.
• Feedback Display: The result (denomination and counterfeit status) is displayed
on the interface.
• User Confirmation: Users can confirm the recognition or provide feedback if the
result is incorrect.
Technology Stack

• Frontend:
1. Mobile frameworks (React Native, Flutter) or web frameworks (React,
Angular).
• Backend:
1. Python (Flask or Django for the web framework).
• Machine Learning:
1. TensorFlow or PyTorch for model development.
• Database:
1. SQLite or PostgreSQL for data storage.
• Image Processing:
1. OpenCV and Pillow for image manipulation.

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4.3 UML DIAGRAMS

FIGURE 4.3:Class Diagram

FIGURE 4.4: Sequence Diagram

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 FIGURE 4.5:Collaboration Diagram

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 5. TESTING & RESULTS

Testing is finding out how well something works. In terms of human beings, testing tells what level
of knowledge or skill has been acquired. In computer hardware and software development, testing
is used at key checkpoints in the overall process to determine whether objectives are being met.
Testing is aimed at ensuring that the system was accurately an efficiently before live operation
commands.
Testing is best performed when user development is asked to assist in identifying all errors and bugs.
The sample data are used for testing. It is not quantity but quality of the data used the matters of
testing.
5.1 LEVELS OF TESTING
• Code testing:
• Code-based testing involves testing out each line of code of a program to
identify bugs or errors during the software development process, or examines
the logic of the program.
• Specification testing:
• Test specifications are iterative, generative blueprints of test design.
• Unit testing:
• Unit testing is testing the smallest testable unit of an application. It is done
during the coding phase by the developers. To perform unit testing, a developer
writes a piece of code (unit tests) to verify the code to be tested (unit) is correct.

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CONT:
Every software can be tested using following Unit Testing Techniques. They are

1. Black Box Testing

2. White Box Testing
1. BLACK BOX TESTING
Black box testing is a software testing techniques in which functionality of the software under test
(SUT) is tested without looking at the internal code structure, implementation details and knowledge
of internal paths of the software.
This type of testing is based entirely on the software requirements and specifications. In Black Box
Testing we just focus on inputs and output of the software system without bothering about internal
knowledge of the software program.

2. WHITE BOX TESTING

White box testing techniques analyze the internal structures the used data structures, internal design,
code structure, and the working of the software rather than just the functionality as in black box
testing. It is also called glass box testing or clear box testing or structural testing.
Working process of white box testing:

• Input: Requirements, Functional specifications, design documents, source

code.
• Processing: Performing risk analysis for guiding through the entire process.
• Proper test planning: Designing test cases so as to cover the entire code.
Execute rinse-repeat until error-free software is reached. Also, the results are
communicated.

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 • Output: Preparing final report of the entire testing process.

Integration Testing:

Integration testing is a level of software testing where individual units are combined and tested as a
group. The purpose of this level of testing is to expose faults in the interaction between integrated
units. Integration testing is defined as the testing of combined parts of an application to determine if
they function correctly. It occurs after unit testing and before validation testing. Integration testing

can be done in two ways: Bottom up Integration

This testing begins with unit testing, followed by tests of progressively higher level combinations
of units called modules or builds.
Top down Integration

In this testing, the highest level modules are tested first and progressively, lower level modules are
tested thereafter

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5.2 IMPLEMENTATION:
pip install opencv-python tensorflow numpy matplotlib
import cv2
import numpy as np
from tensorflow.keras.models import load_model
from tensorflow.keras.preprocessing.image import img_to_array

# Load the pre-trained model

model = load_model('currency_recognition_model.h5') # Replace with your model file

# Function to preprocess the image

def preprocess_image(image):
image = cv2.cvtColor(image, cv2.COLOR_BGR2GRAY) # Convert to grayscale
image = cv2.resize(image, (128, 128)) # Resize to the model's input size
image = img_to_array(image) / 255.0 # Normalize the image
return np.expand_dims(image, axis=0) # Add batch dimension

# Function to predict the currency

def predict_currency(image):
preprocessed_image = preprocess_image(image)
prediction = model.predict(preprocessed_image)
return np.argmax(prediction) # Return the index of the highest probability

# Load and process an example image

image_path = 'path_to_your_currency_image.jpg' # Replace with your image path
image = cv2.imread(image_path)

# Predict currency
currency_index = predict_currency(image)
print(f'Predicted currency index: {currency_index}')

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# Display the image
cv2.imshow('Currency Image', image)
cv2.waitKey(0)
cv2.destroyAllWindows()
import os
import numpy as np
import cv2
from tensorflow.keras.models import Sequential
from tensorflow.keras.layers import Conv2D, MaxPooling2D, Flatten, Dense
from tensorflow.keras.preprocessing.image import ImageDataGenerator

# Set parameters
img_size = (128, 128)
batch_size = 32
epochs = 10
data_dir = 'dataset/' # Path to your dataset

# Prepare data
def load_data(data_dir):
images = []
labels = []
label_map = {}

for label, class_name in enumerate(os.listdir(data_dir)):

label_map[label] = class_name
class_dir = os.path.join(data_dir, class_name)

for img_name in os.listdir(class_dir):

img_path = os.path.join(class_dir, img_name)
image = cv2.imread(img_path)
image = cv2.cvtColor(image, cv2.COLOR_BGR2GRAY) # Convert to grayscale
image = cv2.resize(image, img_size) # Resize to match model input
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 images.append(image)
labels.append(label)

return np.array(images), np.array(labels), label_map

# Load dataset
images, labels, label_map = load_data(data_dir)
images = images.astype('float32') / 255.0 # Normalize

# Split data into training and validation sets

from sklearn.model_selection import train_test_split
X_train, X_val, y_train, y_val = train_test_split(images, labels, test_size=0.2, random_state=42)

# Reshape images for model input

X_train = np.expand_dims(X_train, axis=-1)
X_val = np.expand_dims(X_val, axis=-1)

# Create data generators

train_datagen = ImageDataGenerator(rotation_range=10, width_shift_range=0.1,
height_shift_range=0.1)
train_datagen.fit(X_train)

# Build the CNN model

model = Sequential([
Conv2D(32, (3, 3), activation='relu', input_shape=(128, 128, 1)),
MaxPooling2D(pool_size=(2, 2)),
Conv2D(64, (3, 3), activation='relu'),
MaxPooling2D(pool_size=(2, 2)),
Flatten(),
Dense(128, activation='relu'),
Dense(len(label_map), activation='softmax') # Number of classes
])
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# Compile the model
model.compile(optimizer='adam', loss='sparse_categorical_crossentropy', metrics=['accuracy'])

# Train the model

model.fit(train_datagen.flow(X_train, y_train, batch_size=batch_size),
validation_data=(X_val, y_val),
epochs=epochs)

# Save the model

model.save('currency_recognition_model.h5')
import cv2
import numpy as np
from tensorflow.keras.models import load_model
from tensorflow.keras.preprocessing.image import img_to_array

# Load the trained model

model = load_model('currency_recognition_model.h5')

# Function to preprocess the image

def preprocess_image(image):
image = cv2.cvtColor(image, cv2.COLOR_BGR2GRAY) # Convert to grayscale
image = cv2.resize(image, (128, 128)) # Resize to the model's input size
image = img_to_array(image) / 255.0 # Normalize the image
return np.expand_dims(image, axis=0) # Add batch dimension

# Function to predict the currency

def predict_currency(image):
preprocessed_image = preprocess_image(image)
prediction = model.predict(preprocessed_image)
return np.argmax(prediction) # Return the index of the highest probability

DEPARTMENT OF SCIENCE AND TECHNOLOGY

# Load and process an example image
image_path = 'path_to_your_currency_image.jpg' # Replace with your image path
image = cv2.imread(image_path)

# Predict currency
currency_index = predict_currency(image)
print(f'Predicted currency index: {currency_index} ({label_map[currency_index]})')

# Display the image

cv2.imshow('Currency Image', image)
cv2.waitKey(0)
cv2.destroyAllWindows()

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5.3 OUTPUT:

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 6. CONCLUSION AND FUTURE SCOPE

6.1 Conclusion

The currency recognition system using image processing successfully demonstrates the integration
of computer vision and machine learning to identify different denominations of banknotes. By
leveraging techniques such as image enhancement, feature extraction, and advanced modeling (e.g.,
CNNs), the system can effectively classify currencies with high accuracy. This technology not only
simplifies cash handling for users but also enhances security and reduces fraud. The system's
performance can be further refined through continual learning and updating with new data, ensuring
adaptability to changes in currency designs.

6.2 Future Work

• Broader Currency Support: Expand the system to recognize a wider range of currencies from
different countries, including emerging markets.

• Real-time Recognition: Enhance the application for real-time currency recognition, making it
suitable for point-of-sale systems or mobile applications.

• Multilingual Support: Incorporate multilingual support for user interfaces, enabling global
usability.

• Advanced Features: Add functionality to detect counterfeit bills using security features such as
watermarks and infrared patterns.

• Integration with Financial Services: Partner with banks and financial institutions to provide a
secure and efficient way to process cash transactions.

• User Customization: Allow users to customize settings based on their preferences, such as
currency types and recognition modes.

• Research and Development: Explore the application of other image processing techniques and
machine learning models to enhance accuracy and robustness.

• Deployment on Edge Devices: Optimize the system for deployment on edge devices, reducing the
need for cloud computing and enabling offline functionality.

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 REFERENCES

[1] Bradski, G., & Kaehler, A. (2016). Learning OpenCV 4:

Computer Vision with Python. O'Reilly Media.
[2] Rosebrock, A. (2019). Deep Learning for Computer Vision with Python.
PyImageSearch.
[3] Kaur, R., & Rani, S. (2021). Automatic Currency Recognition
Using Image Processing. International Journal of Computer
Applications, 174(8), 1-6.
[4]https://doi.org/10.5120/ijca2021921001
[5] Ng, A. (2020). Convolutional Neural Networks.
Coursera. Retrieved from
[6]https://www.coursera.org/learn/convolutional-
neural-networks
[7] OpenCV. (n.d.). OpenCV Documentation. Retrieved from https://docs.opencv.org/
[8] Abdi, S., & Torkzadeh, J. (2020). A survey of image recognition
techniques using machine learning. International Journal of
Computer Science and Network Security, 20(5), 29-37.
[9] TensorFlow. (n.d.). TensorFlow Documentation. Retrieved from
https://www.tensorflow.org/
[10] Kaggle. (n.d.). Datasets. Retrieved from https://www.kaggle.com/datasets

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