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Intelligent data acquisition with real time data processing require an efficient algorithm to reduce the amount of redundant data collected during the acquisition process. Changing the sampling rate in accordance with acquired signal bandwidth will reduce the supererogatory information collected. In these case self-adaptive sampling rate is used that will continuously adapts the sample rate during the acquisition. Data are acquired continuously at fixed sample rate then the rest of the process is based on bandwidth estimation algorithm. Decimation factor for acquired signal was found out with the help of bandwidth estimation algorithm. The system optimizes the amount of data collected while retaining the same information.