The ease of access to modern technology has rapidly changed the way people go about their day-to-day activities. Today, anyone with a laptop can build a software application which can empower the world with new possibilities of technological advancements. Therefore, access to modern technology has given the power to a common man to build anything they want, be it groundbreaking or not. But at the same time, this brings up a lot of problems to the society and the way it functions too. One of those problems is the circulation of counterfeit currency notes. Back then, the currency notes had to be officially printed in a mint or a publicly authorized print house. But now, anyone with a laser printer can print a currency note without compromising the accuracy in features. Due to this advancement in the printing technology, counterfeit currency has become a huge problem worldwide. This adds to the already existing issues like black money and corruption. Therefore, there is an urgent need for counterfeit currency detectors which can function with maximum accuracy and efficiency. The proposed system will detect the counterfeit nature of the currency by using various image processing techniques like Edge detection, Segmentation, Feature extraction with the help of MATLAB programming.