The militants, whose number was not known, barged into the Jammu and Kashmir Bank branch at Rantipora in Pulwama district, a police official said.
He said they took away Rs 11 lakh from the branch before fleeing.
Soon after the incident, police arrived on the spot but local residents started pelting stones at them, he said.
This is third bank robbery by militants since the Centre announcement of demonetisation of Rs 500 and Rs 1000 notes on November 8.
PTI