File-processing is adequate for many information systems, and it has been a backbone of the computer industry for many years. However, it has some problems and limitations. These are summarized as follows:

• Data redundancy: In a filesystem-oriented approach, the same data item is often embodied in many diverse files. This repetition of the same data items in more than one file is comprehended as data redundancy. Data redundancy wastes storage space and boosts the cost to keep common data up to date.
• Data integrity problems: In a file-oriented approach, the validity of the data cannot be checked. Any data can be added to a file. There is no restriction for data at the time of entry. Hence, integrity cannot be enforced (made compulsory). For example, the name field, which only accepts alphabets, also accepts numeric data if the file approach is used, though it is not the valid data for this field.
• Inconsistency: The updating of or changes made in one file are not reflected in the other related files. Thus the information does not remain consistent automatically when editing data in one file.
• Sharing problem: In the file-processing system, data cannot be shared. If somebody is using one file, others cannot share that file.
• Lack of program/data independence: In a file-oriented approach, the application program usually contains data formats that precisely define each data field to be processed. This often results in different files having the same data item stored using different data formats. Data dependence occurs when the data is dependent on the application. Due to a data-dependence problem, when there is a need to add, delete, or change data formats, the application program must also be changed; that is, so that any change to the structure of a file may require changing all programs that access a file.
• Limited data security flexibility: A file-oriented approach offers file-level data security. That is, data-access restrictions can be enforced only for the entire file, not for an individual record or a field of a data item.