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In recent years, the research on KMH (renminbi bank note, the paper currency used in China) serial number recognition has drawn more and more attentions. It has promising applications in financial crime reduction, financial market and social stabilization. The accuracy of RMB recognition relies heavily on the image preprocessing results. In this paper, we propose an entire preprocessing system, including the steps of RMB image sampling, skew correction, identification of RMB orientation, serial number region detection and binarization, and character extraction. Experimental results demonstrate that the proposed method achieves high precision and facilitates the subsequent character recognition task. [ABSTRACT FROM AUTHOR]