We have suffer a lot of problems due to lack of coins at places like bus station, railway station, mall , grocery shop. Our main motive of developing user friendly and simple machine which will fulfill need of coins for transactions so that people will not suffer problems due to lack of coins. Presented project output provide us coins, for this purpose we have developed mechanical coin dispensing model which takes the note inside and checks whether note is fake or real, if note is real camera takes picture of it. After that it will find out its value using image processing technique and then, if the amount is match then according to the amount coins will dispense. In this project we have developed a MATLAB program for image detection, and to find the value. and we have implemented a fake note detection unit using UV light. Manual testing of all notes in detection is very time consuming and untidy process and also there is a chance of tearing while handling notes. Therefore automatic methods for bank note recognition are required in many applications such as automatic selling goods and vending machines.

Keywords : Note Placing Unit, Microcontroller, LCD, Coin dispensing Model.