Hello Pankaj,
Well you need to be aware that the user management of DB2 and Oracle are quite different.
In DB2, the user are defined in the OS (Unix or Windows), and by default, if you are the instance owner of your database, then you are "automatically" authorised in the database. That's why CMOD installation guide wants you that you install CMOD with the instance owner, that way you are "directly" connected with the database.
-> No password needed.
In Oracle, you need to define an internal user in Oracle, so it means you need to know the password of this internal user in order to connect to the database. With that idea, you must provide the user/password somewhere.
In CMOD 7.X and 8.X you will write it in clear text in the ars.cfg file.
With CMOD 9.X you finally can save the Oracle password in a stash file encrypted.
Now with Oracle, there is a way that you don't need a password, and if you are a OS user (Unix or Windows), then you'll be "automagically" connected to the database.
(like a sqlplus / ). Does it work with OnDemand? Well I've tried it... maybe, maybe not.
Sincerely yours,
Alessandro