Q: - What do you understand about the DBMS system in a Banking sector?

Ans:- A database management system (DBMS), sometimes just called a database manager, is a
program that lets one or more computer users create and access data in a database. The DBMS
manages user requests (and requests from other programs) so that users and other programs are free
from having to understand where the data is physically located on storage media and, in a multi-user
system, which else may also be accessing the data. In handling user requests, the DBMS ensures
the integrity of the data (that is, making sure it continues to be accessible and is consistently organized
as intended) and security (making sure only those with access privileges can access the data). The most
typical DBMS is a relational database management system (RDBMS). A standard user and program
interface is the Structured Query Language (SQL). A newer kind of DBMS is the object-oriented database
management system (ODBMS).

A DBMS can be thought of as a file manager that manages data in databases rather than files in file
systems. In IBM's mainframe operating systems, the non relational data managers were (and are,
because these legacy application systems are still used) known as access methods.
A DBMS is usually an inherent part of a database product. On PCs, Microsoft Access is a popular example
of a single- or small-group user DBMS. Microsoft's SQL Server is an example of a DBMS that serves
database requests from multiple (client) users. Other popular DBMSs (these are all RDBMSs, by the way)
are IBM's DB2, Oracle's line of database management products, and Sybase's products.
IBM's Information Management System (IMS) was one of the first DBMSs. A DBMS may be used by or
combined with transaction managers, such as IBM's Customer Information Control System (CICS).

There are several advantages. Here are some of them:

 Centralized control — since all the data can be stored on one or more computers using
the same database management software, it is easier to administer.
 Since the data is centralized, there is no need to duplicate information. Unlike paper
systems, every user can see a "copy" of the data without making actual new copies.
Similarly, the database management system eliminates the need for duplication that
results from using single-user, isolated application programs.
 Again, because of centralization, the database management system can maintain a
degree of accuracy that it not possible when data is stored throughout the organization.
It also is easier to enforce standards.
 Security of the organization's data is greatly improved when it is stored in a database
management system — data can be restricted so that only those users who are
authorized may see or manipulate it.

Functions of DBMS

• DBMS free the programmers from the need to worry about the organization and location
of the data i.e. it shields the users from complex hardware level details.
• DBMS can organize process and present data elements from the database. This capability
enables decision makers to search and query database contents in order to extract answers
that are not available in regular Reports.

• Programming is speeded up because programmer can concentrate on logic of the

application.

• It includes special user friendly query languages which are easy to understand by non
programming users of the system.

The various common examples of DBMS are Oracle, Access, SQL Server, Sybase, FoxPro,
Dbase etc.

The service provided by the DBMS includes:

• Authorization services like log on to the DBMS, start the database, stop the Database etc.
• Transaction supports like Recovery, Rollback etc,
• Import and Export of Data.
• Maintaining data dictionary
• User's Monitoring

ADVANTAGES OF DBMS

The DBMS (Database Management System) is preferred ever the conventional file
processing system due to the following advantages:

1. Controlling Data Redundancy - In the conventional file processing system, every user
group maintains its own files for handling its data files. This may lead to

• Duplication of same data in different files.

• Wastage of storage space, since duplicated data is stored.
• Errors may be generated due to updating of the same data in different files.
• Time in entering data again and again is wasted.
• Computer Resources are needlessly used.
• It is very difficult to combine information.

2. Elimination of Inconsistency - In the file processing system information is duplicated

throughout the system. So changes made in one file may be necessary be carried over to
another file. This may lead to inconsistent data. So we need to remove this duplication
of data in multiple file to eliminate inconsistency.
For example: - Let us consider an example of student's result system. Suppose that in
STU¬DENT file it is indicated that Roll no= 10 has opted for 'Computer ‘course but in
RESULT file it is indicated that 'Roll No. =l 0' has opted for 'Accounts' course. Thus, in this
case the two entries for z particular student don't agree with each other. Thus, database
is said to be in an inconsistent state. Sc to eliminate this conflicting information we need
to centralize the database. On centralizing the data base the duplication will be
controlled and hence inconsistency will be removed.

Data inconsistency are often encountered in every day life Consider an another
example, w have all come across situations when a new address is communicated to an
organization that we deal it (E.g. - Telecom, Gas Company, Bank). We find that some of
the communications from that organization are received at a new address while other
continued to be mailed to the old address. So combining all the data in database would
involve reduction in redundancy as well as inconsistency so it is likely to reduce the
costs for collection storage and updating of Data.

Let us again consider the example of Result system. Suppose that a student having Roll
no -201 changes his course from 'Computer' to 'Arts'. The change is made in the
SUBJECT file but not in RESULT'S file. This may lead to inconsistency of the data. So we
need to centralize the database so that changes once made are reflected to all the
tables where a particulars field is stored. Thus the update is brought automatically and is
known as propagating updates.

3. Better service to the users - A DBMS is often used to provide better services to the
users. In conventional system, availability of information is often poor, since it normally
difficult to obtain information that the existing systems were not designed for. Once
several conventional systems are combined to form one centralized database, the
availability of information and its updateness is likely to improve since the data can now
be shared and DBMS makes it easy to respond to anticipated information requests.

Centralizing the data in the database also means that user can obtain new and
combined information easily that would have been impossible to obtain otherwise. Also
use of DBMS should allow users that don't know programming to interact with the data
more easily, unlike file processing system where the programmer may need to write
new programs to meet every new demand.

4. Flexibility of the System is Improved - Since changes are often necessary to the
contents of the data stored in any system, these changes are made more easily in a
centralized database than in a conventional system. Applications programs need not to
be changed on changing the data in the database.

5. Integrity can be improved - Since data of the organization using database approach is
centralized and would be used by a number of users at a time. It is essential to enforce
integrity-constraints.

In the conventional systems because the data is duplicated in multiple files so updating
or changes may sometimes lead to entry of incorrect data in some files where it exists.

For example: - The example of result system that we have already discussed. Since
multiple files are to maintained, as sometimes you may enter a value for course which
may not exist. Suppose course can have values (Computer, Accounts, Economics, and
Arts) but we enter a value 'Hindi' for it, so this may lead to an inconsistent data, so lack
of Integrity.

Even if we centralized the database it may still contain incorrect data. For example: -

• Salary of full time employ may be entered as Rs. 500 rather than Rs. 5000.
• A student may be shown to have borrowed books but has no enrollment.
• A list of employee numbers for a given department may include a number of non
existent employees.

These problems can be avoided by defining the validation procedures whenever any
update operation is attempted.

6. Standards can be enforced - Since all access to the database must be through DBMS,
so standards are easier to enforce. Standards may relate to the naming of data, format
of data, structure of the data etc. Standardizing stored data formats is usually desirable
for the purpose of data interchange or migration between systems.

7. Security can be improved - In conventional systems, applications are developed in an

adhoc/temporary manner. Often different system of an organization would access
different components of the operational data, in such an environment enforcing
security can be quiet difficult. Setting up of a database makes it easier to enforce
security restrictions since data is now centralized. It is easier to control that has access
to what parts of the database. Different checks can be established for each type of
access (retrieve, modify, delete etc.) to each piece of information in the database.
Consider an Example of banking in which the employee at different levels may be given
access to different types of data in the database. A clerk may be given the authority to
know only the names of all the customers who have a loan in bank but not the details of
each loan the customer may have. It can be accomplished by giving the privileges to
each employee.

8. Organization's requirement can be identified - All organizations have sections and

departments and each of these units often consider the work of their unit as the most
important and therefore consider their need as the most important. Once a database
has been setup with centralized control, it will be necessary to identify organization's
requirement and to balance the needs of the competating units. So it may become
necessary to ignore some requests for information if they conflict with higher priority
need of the organization.

It is the responsibility of the DBA (Database Administrator) to structure the database

system to provide the overall service that is best for an organization.

For example: - A DBA must choose best file Structure and access method to give fast
response for the high critical applications as compared to less critical applications.

9. Overall cost of developing and maintaining systems is lower - It is much easier to
respond to unanticipated requests when data is centralized in a database than when it is
stored in a conventional file system. Although the initial cost of setting up of a database
can be large, one normal expects the overall cost of setting up of a database, developing
and maintaining application programs to be far lower than for similar service using
conventional systems, Since the productivity of programmers can be higher in using
non-procedural languages that have been developed with DBMS than using procedural
languages.

10. Data Model must be developed - Perhaps the most important advantage of setting
up of database system is the requirement that an overall data model for an organization
be build. In conventional systems, it is more likely that files will be designed as per need
of particular applications demand. The overall view is often not considered. Building an
overall view of an organization's data is usual cost effective in the long terms.

11. Provides backup and Recovery - Centralizing a database provides the schemes such
as recovery and backups from the failures including disk crash, power failures, software
errors which may help the database to recover from the inconsistent state to the state
that existed prior to the occurrence of the failure, though methods are very complex.