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What is RMI in banking?

Published in Banking Technology 2 mins read

RMI in banking, specifically Remote Method Invocation, is a technology used to create distributed banking systems, allowing different parts of the system to communicate and function remotely. It's a way for different software components in different locations to interact with each other.

Understanding RMI in the Context of Banking

In a distributed banking system, RMI plays a crucial role. The reference text states that the "Distributed Banking System is a client-server program which is implemented using RMI (Remote Method Invocation). The server manages all users' account information." This means that the bank's central server, which holds all the account details, can be accessed and manipulated by various client applications (like teller systems, online banking platforms, etc.) using RMI.

How RMI Works in Banking:

  1. Client Request: A client application (e.g., a teller system) needs to access or modify account information.
  2. Remote Method Call: The client application uses RMI to call a method on the server as if it were a local method.
  3. Server Processing: The server receives the request, executes the method, and retrieves or updates the account information.
  4. Response: The server sends the result back to the client application through RMI.

Benefits of Using RMI in Banking:

  • Centralized Data Management: The server manages all account information in one central location.
  • Scalability: The system can scale to handle a large number of clients and transactions.
  • Security: RMI can be used to implement secure communication between clients and the server.
  • Flexibility: Allows for various client applications to access the banking system.

Example:

Imagine a customer wants to withdraw money from their account using an ATM.

  1. The ATM (client) uses RMI to connect to the bank's central server.
  2. The ATM uses RMI to call the withdraw() method on the server, passing the account number and withdrawal amount as parameters.
  3. The server processes the withdrawal, updates the account balance, and sends a confirmation message back to the ATM through RMI.
  4. The ATM dispenses the cash and displays the updated balance to the customer.

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