I think the book’s definition of on-line is even older than that, though I’m not 100% certain it’s different than what you mean. OLTP is usually referring to databases, right? The book defines “on-line” to be when devices are directly connected to the CPU, and uses punch cards as the example of keyboard inputs that are not “on-line”.

“Where devices are told what to do by the central processing unit, they are on-line. If a computer system produced the answer on a set of punched cards (card deck), the programmer or user would have to take them to another machine to get a printing of the meaning of the holes in the cards. That second machine - not being under the control of the central processing unit - is off-line.” (p. 49)