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Preventive maintenance in the transformer is performed through a differential relay protection system, and it protects the transformer from internal and external faults. However, the Current Transformer (CT) in the differential protection system mal-operates during inrush currents. CT saturates due to magnetizing inrush currents and causes false tripping of the differential relays. Moreover, identification of tripping in protection relay either due to inrush current or internal faults needs to be diagnosed. For the above problem, continuous monitoring of transformer breather and CT terminals with thermal camera helps detect the tripping in relay due to inrush or internal fault. The transformer's internal fault leads to high breathing process in the transformer breather, never for inrush currents. During inrush currents, CT temperature is increased. Continuous monitoring of breather and CT of the transformer through thermal imaging and radiometric pixels detect the causes of CT saturation and differentiates maloperation. Hybrid wavelet threshold image analytics (HWT-IA) based radiometric pixels analysis of the transformer breather and CT after de-noising provides an accurate result of about 95% for identification of the false tripping of differential protection system of transformer. [ABSTRACT FROM AUTHOR]