Radio frequency identification has found ubiquitous usage in today‟s industry. Object identification and tracking, supply chain management, anti-theft and fraud systems are just some of the uses RFID tags find in today‟s market. As the RFID technology competes with other technologies present in the market, a large amount of research has been undertaken in order to optimize the performance and cost factors of the readers and tags involved in the RFID system. Various implementations on different devices such as ICs and CMOS System on Chip (Soc) have been tried out. FPGAs are also being considered as a potential target device for implementing RFID systems. This project aims at the design of an FPGA implementable RFID Tag processor design for the purpose of baseband signal processing. A new architecture has been proposed and implemented for this processor. This architecture takes into consideration the flexibility of the entire system with the help if independent sub modules. Also, the suggested architecture has taken into consideration the creation of an innovative single tag for multiple purposes which can interact with various types of readers and convey the required information to each one of them. The RFID tag has been designed in accordance to EPCglobal Class1 Generation2 standard for operation in the range of 860-960 MHz in the air interface. The design of the tag components has been done with the help of XILINX and the verifications and analysis with ModelSim.