The gunfight occurred when the police cornered two people in Ramganj Bazar area. In the exchange of fire, Ramji was injured while his accomplice managed to escape, they said.
He was rushed to the primary health centre which referred him to the district hospital. He died during treatment, police said.
A country-made pistol and cartridges were seized from Ramji who was carrying a cash reward of Rs 12,000, police said.