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For the time being, many government or private organizations for recruitment of staff or educational institutions moving towards online based tests. The online examination system is a software application used for conducting examination using computer systems. It helps to the recruitment agency or any govt. or private organizations for conducting any job recruitment examinations transparently. Due to this system results are processed without delay and efficiently evaluated to assess the candidates abilities. But the biggest challenge for online examination system is data integrity, security and privacy. The current system is resolving the privacy issue by providing authentication credentials such as user name, password to the candidates. So that only authorized users with proper credentials can login to the system and attempt the exam. But the data confidentiality and integrity are biggest challenges for the system. As the data stored in system database is in plain text format, hence it may be modified or misused by the internal staff of the organization. This paper presents the frame work for secure storage and management of candidates data using encryption scheme, distributed databases in cloud database system. The proposed framework enhances the data confidentiality, integrity and avoids any cheating by internal staff or third party institutions. This paper conducts experimental work on proposed framework and analyses the results of the system. [ABSTRACT FROM AUTHOR]