The Army on Wednesday continued its search operation a day after a JCO was killed in a gunfight with terrorists, who had sneaked into Indian territory taking cover of firing from the Pakistani side, in Jammu and Kashmir's Rajouri district, an official said.

 India has strongly condemned any direct or indirect financial assistance to terrorists and terror groups by nations that enables them to pursue their activities, including in defending criminal cases against them.

The day curfew, which was imposed in the town following the weapon snatching incident on Friday, was lifted but all educational institutions remained closed as a precautionary measure, the officials said.

The decisions have been taken nearly a month after Parliament approved a crucial amendment to The Unlawful Activities (Prevention) Amendment Act, 1967.

"The government's decision on Article 370 was taken in the interest of the nation as well as the common people of Jammu and Kashmir," Prasad told reporters on the sidelines of the inauguration of the 17th all India meet of state legal services authorities in Nagpur, Maharashtra.

Acting on a specific information about the presence of terrorists in the Narwani area of Shopian district of south Kashmir, the security forces launched a cordon-and-search operation on Friday morning, a police official said.

It should demonstrate that facilities and services owned or controlled by designated person are deprived of their resources and the usage of the resources, it said.

The security forces launched a cordon-and-search operation in Bijbehara area of the south Kashmir district in the morning following inputs about the presence of militants. The operation turned into an encounter after the militants opened fire on the forces, an officer said.