<p>Many facts characterize good governance, and one of these is ensuring that the right people are getting the facilities such as subsidies and government policies targeted by the Government. Features like transparency, responsiveness, and consensus orientation characterize good governance. Direct Benefit Transfer (DBT) is one such policy of good governance through which the Government transfers the benefit in the form of a subsidy to the beneficiary account without the intervention of any third party and without even visiting the government departments. This research aims to develop a framework that ensures transparency in DBT and, simultaneously, prevents fraudulent malpractices such that no third-party frauds enjoy the benefit targeted at other people. Identifying the correct beneficiary in real-time is one of the challenges of this system. To develop such a system features like provenance, transparency, security, reliability, and the ability to avoid direct cash transactions are inherent. Considering all these issues, a novel DBT system is proposed in this research work for fertilizer distribution and payment that incentivizes the stakeholders Farmers/ Retailer / Wholesalers / Manufacturers by initiating a smart contract-based payment mechanism using Ethereum, a tokenization concept based on Blockchain technology. All transactions can be proved for their provenance, and care has been taken to leverage the Blockchain technology through the Ethereum Platform to control improper fund allotment in the form of subsidy. As the farmers are the biggest beneficiaries of this scheme, much control has been given to the farmers. Farmers can only do cash transactions (as they are unaware of crypto-transactions and different digital platforms), and all other entities need to do digital transactions only, ensuring the system’s transparency and preventing fraudulent activities. The ERC20 token concept is used to prove provenance in transactions.</p>