Over-the-counter (OTC) banking refers to face-to-face banking transactions done at a physical branch counter. You walk into the bank, talk to a teller, and get your transaction done — deposits, withdrawals, fund transfers, check encashment, account inquiries, and more.
Before digital banking, OTC was the only way to bank. Every transaction required a physical visit. Even today, certain transactions — large cash deposits, complex account changes, loan applications, and KYC verification — often require in-person OTC service.
With the rise of mobile banking and UPI, OTC transactions have declined dramatically. In India, digital transactions surpassed 118 billion in volume by 2024. But OTC banking remains essential for elderly customers, rural areas with limited internet, and transactions that require physical verification or documentation.