Public Distribution System is a government-sponsored chain of shops entrusted with the work of distributing basic food and non-food commodities to the needy sections of the society at very cheap prices. It is also an important constituent of the strategy for poverty eradication and is intended to serve as a safety net for the poor people whose number is more than 33 Crores and are nutritionally at risk. The current Public Distribution System has several well documented problems such as lack of transparency, accountability, poor governance and poor service delivery mechanisms. A large number of poor and needy members of society are left out and a lot of bogus cards are also issued. This leads to increase in corruption. Our project proposes the improvised technique of implementing smart ration card system. It also depicts the automated version of the Public Distribution System. At the time of implementation, for identification purpose we are giving unique QR-code to each customer. This will help to keep track of their respective accounts. Customers will also receive SMS notification of their successful registration and stock allotted to them. Thus our system will help to create transparency in transactions and will also help to manage accountability. © 2017 IEEE.