The India-based Neutrino Observatory (INO) collaboration has proposed to build a 50 kton Iron- Calorimeter (ICAL) to study neutrino oscillations. About 28,800 Resistive Plate Chambers will be used as active detector elements in this experiment. Preliminary studies are currently underway and as a part of it, a prototype detector was developed which now serves as a cosmic-ray telescope and as a test-bench to study the indigenously built RPCs. A VME-based data acquisition system was designed for this prototype system. Modern software tools were used in the designing of the DAQ software. The design and development of this DAQ system are discussed.