The cores of electrical motors and transformers are made by blanking and piercing and stacking of thin metallic sheets having various features cut from the original blank. The material experiences local plastic deformation at the vicinity of the cut edge due to the blanking operation. The quality and efficiency of the produced products are directly affected by the mechanical and magnetic properties of the blanks at the cut edge. The current research aims to understand the influence of blanking operation of local deformation of thin strip steels. A novel blanking apparatus is designed and Digital Image Correlation (DIC) technique has been used to measure the local deformation during the blanking operations. The effect of blanking operation on the extension of the cut edge zone is investigated in order to define the optimised design parameters.