Is there any secure local service that one should use for storing and retrieving organization wide application passwords? Most of the time we need authentication information in our scripts to run some service.
Therefore I need some way to dynamically retrieve a password from my secure store/bucket and pass it as variable in authentication information , instead of hard-coding it in my scripts.
Short answer, no. The problem is that at some point your script will need to go get a password from that central store. How does it do that? Most password storage systems use a master password to secure the whole store. Your script would need that master password in order to get its app password. You haven't solved the issue you've just changed it.
The approach I take to this is that if your script needs specific access to an application setup a user that can only do the specific thing that your script needs to do. Then you can store that password with the script itself. If the server that's hosting the script gets compromised the attacker will only be able to do exactly what you've given the script permission to do. Also, you can revoke the attackers access by changing that user's password. Since the only thing using that user was the script in question, nothing else is broken.
Maybe you can setup oauth?
There is also implementation for python(as i saw python in the tags): https://github.com/joestump/python-oauth2
For the rest, If i could I would vote down this question as there is not enough information provided. But ye I assume that you need something like what I've just suggest you
sshpublic-private keypairs instead?