Two policemen and two civilian were killed when suspected militants attacked a police party in Mir Bazaar area in J-K's Anantnag district on Saturday.
According to reports the gunmen opened fire at police who were clearing traffic on the Srinagar-Jammu highway.
As per news agency ANI, three more policemen sustained injuries in the attack.
The attack came hours after the government suspended cash transactions at nearly 40 branches in the sensitive areas of Pulwama and Shopian districts in South Kashmir.
J&K:Two policemen and two civilians killed, three cops injured in terrorist attack in Mir Bazaar (Kulgam): Visuals from the site pic.twitter.com/GiXtjkCfkb— ANI (@ANI_news) May 6, 2017
The step was taken following an advisory issued by security agencies asking the banks operating in the two districts to stop cash deliveries at the branches located in these areas as they apprehend more such attacks.
The advisory by the security agencies comes in the wake of a spurt in attacks on banks in south Kashmir. On May 1, militants attacked a cash van of Jammu and Kashmir Bank and shot dead five policemen and two bank security guards in Damhal Hanji Pora area of Kulgam district in south Kashmir.
The militants fled after the attack. A combing operation was launched immediately to track them down, the police said.
(With inputs from agencies)