RFID Technology is now a globally accepted technology which is rapidly emerging in every field of science and applications. It's excellent feature of very fast auto identification without line of sight has made it popular in different areas of wire-less communication based system. But, during data transmission/exchange, security of personal or confidential data, it exposes serious threats to the security and privacy of individuals and organizations. Data security for RFID technology is now a mandatory condition to be provided by the manufacturer for better customer support and services. In this paper, we have proposed a security scheme which
introduces a trusted Key management system. In this system, not a single key but several keys will be maintained, controlled and provided by the Key distribution server system (KDSS). It will be extremely useful for military persons in remote places where it is useful to identify specific item or guide to right route. Data will be encrypted using different programmable cellular automata (PCA) rules which is also provided with the key by the server. The system processor has been implemented up to RTL schematic level using Xilinx ISE14.3 simulation tool and virtex-7 FPGA board for real time verification of its functionality