However, the police have sounded a high alert as a precautionary measure and asked citizens to not panic and report any suspicious movement.
In view of the rumours that "terrorists had entered Udhampur and are planning attack" and the subsequent panic, several private schools in the district closed for the day as parents rushed and took home their wards.
"Only some private schools are closed, rest all the educational institutions, including government-run schools, functioned normally," Chief Education Officer, Udhampur, Jattu Ram Bhardawaj told PTI.
Udhampur district police also came out with a post on Facebook saying there were intelligence inputs about infiltration through the Line of Control in Poonch-Rajouri belt.
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"High alert has been sounded for security installations at all places in Jammu zone as a precautionary measure," the post read.
The district police asked the people to report any suspicious movement but "there is no need to panic" and added: "Rumours of terrorists being sighted in Udhampur are baseless."
Meanwhile, the police conducted search operations at several places in Miran Sahib and R S Pora areas on the outskirts of Jammu since last evening.
He said the situation in the border districts of Poonch and Rajouri were normal.