Universal currency identifier is a system used for recognition of currency. In today’s world of automation this systems play an important role. It has various scope like banking application, currency monitoring systems, ATM machine, money exchange machines, visually impaired people and so on. This paper proposes a system with image processing techniques for identification as well as fake note detection of Indian currencies like 10, 20, 50, 100, 200, 500, 2000 rupees. First we acquire the image using camera. The system use different methods for Indian currency identification like color recognition, feature extraction and digit recognition. The feature extraction is performed on the given images of the currency and it is compared with the real image. Image processing involves the changing of nature of an image in order to improve its quality of information for human interpretation. The result will be the identification of Indian currency and fake note detection as well.

Keywords : Paper Currency, Image Acquisition With Camera, Pre-Processing, Feature Extraction, Classifier.