In resource-constrained economies across Asia and Africa, where approximately 700 million individuals subsist below the international poverty threshold of $2.15 per day (World Bank, 2025), government-sponsored Public Distribution Systems (PDS) providing subsidized rations are challenged by inefficiencies associated with manual and paper-based authentication protocols. Such limitations may enable data inconsistencies, inaccurate entitlement tracking, and administrative leakages, affecting transparency and operational efficiency. To address these challenges, this manuscript presents a WEB server–integrated IoT-enabled RFID ATM ration vending prototype for improving transparency and automation in localized PDS environments. The proposed architecture employs an Xtensa LX7 dual-core microcontroller coordinating RFID readers, relay modules, and feedback mechanisms, with dual dispensing mechanisms: a precision spring-actuated dispenser for pre-packaged rations (0.5–5 kg) and a solenoid-controlled hopper mechanism for volumetric grain dispensing (1–5 kg). Beneficiary RFID credentials interface with an SQL and Python backend through a Tkinter-based graphical user interface (GUI), enabling wireless communication via a dedicated web server for quota management and transaction recording. The prototype was developed and tested in a controlled environment to validate automated ration dispensing. Experimental observations indicate approximately 98% dispensing fidelity, while the automated framework demonstrates the potential to reduce manual administrative involvement. The presented system serves as a prototype-level technological model illustrating how embedded automation and digital record management may improve transparency and efficiency in welfare-oriented distribution systems.