JOURNAL OF ENGINEERING TECHNOLOGY ISSN: 0747-9964 Article No: C61201884 DATE: 29/02/2017 DOI: 10.21859/jet American Society for Engineering Education 1818 N Street N.W. Suite 600, Washington DC 20036 202.331.3500 (TEL) 202.265.8504(FAX) Imperfect Persian Banknote Detection and Evaluation Elham Hariri a* , Mahdi Hariri b , Mehdi Afzali c a Faculty of. Electrical and computer Engineering, Islamic Azad University, Zanjan Branch. b Faculty of. Electrical and computer Engineering, Islamic Azad University, Zanjan Branch. c Faculty of. Electrical and computer Engineering, Islamic Azad University, Zanjan Branch. Less important role of banknotes was expected in transactions by the advent of electronic tools in Abstract banking systems; however, banknotes have kept their status despite all electronic facilities. Studying common Persian banknotes in Iran, this article aims to offer a solution to detect imperfect banknotes. Prior to the detection of type of banknote, it assesses its potential to return to the economic cycle. Such pre-processing consists of angle of deviation compensation in banknote image, detection of banknote rupture, banknote drooping, and detection of banknote value using Haar wavelet transform and matching two halves of banknote in order to clarify the banknote usability. Adding this algorithm to banknote detection algorithm in banknote sorting machines leads to decreased accuracy and speed of the machines to package imperfect banknotes, resulting in effective time and cost saving. Keywords imperfect banknote, image processing, Morphology, Wavelet, correlation.