Day by day, data broadcasting over internetworking is accelerating tremendously. As we see lot of data is abducted over network, so it necessitates providing data security. The RDH (Reversible Data Hiding) approach is intended for grayscales images previously and it cannot be directly applied to the palette image. Here, at the sender side the palette image is used as input and the encryption of image is done by using the encrypted key. In the image, alterations are done by using the color partitioning with RGB model. DWT (Discrete Wavelet Transform) is used for hiding textual data into multimodal image. After performing the encryption of the intended image, some data is hidden by utilizing data hiding key. At receiver side the received image is decrypted and the result is identified. The original contents can be reconstructed after data extraction and the contents of owners privacy remains protected.