Can Snowflake schema be used in OLTP?

As in Star schema dimensional data is denormalized whereas in snow flake dimensional tables are normalized basing on business requirements.
In OLTP data is stored in normalised form.

Therefore is it possible to implement snowflake schema in OLTP environment? Yes or No? Justify.

This question makes no sense. You either are building an OLTP data model or a dimensional model. Snowflaking a dimensional model doesn't make it an OLTP model.

Why stop at a snowflaked model? Why not implement a star schema as a OLTP model? But, in the end, like BnL says, just because a DM is snowflaked, doesn't make it a OLTP. It's how you use it that will determine if it's OLTP.

Like the other posters have said it depends on what you are using it for.

Consider a budget application. You need all this financial information rolled up along a variety of levels. A normalized model for that would not perform very well, but a star schema that can be updated handles this sort of need nicely.

The same would be true for a forecasting system for products.