In this paper a novel spatial domain LSB based watermarking scheme for color Images is proposed. The proposed scheme is of type blind and invisible watermarking. Our scheme introduces the concept of storing variable number of bits in each pixel based on the actual color value of pixel. Equal or higher the color value of channels with respect to intensity of pixel stores higher number of watermark bits. The Red, Green and Blue channel of the color image has been used for watermark embedding. The watermark is embedded into selected channels of pixel. The proposed method supports high watermark embedding capacity, which is equivalent to the size of cover image. The security of watermark is preserved by permuting the watermark bits using secret key. The proposed scheme is found robust to various image processing operations such as image compression, blurring, salt and pepper noise, filtering and cropping.