"The counter-intelligence grid will keep functioning and we will not lower our guard. We will continue to generate inputs and collate them," said the officer.
The centre feels its initiative will restore peace in the valley during the holy month.
"It's not a concession given to terrorists but to people who face hardships whenever such operations take place," a senior home ministry level official told NDTV.
Refusing to call it a ceasefire that is "between two countries across a border", the official said "here, we are just making life easy for people".
"The government expects everyone to cooperate in this initiative that will help Muslim brothers and sisters observe Ramzan peacefully," says a senior officer in the Prime Minister's Office.
Terrorist group Lashkar-e-Taiba has rejected the government's offer, saying it will keep targeting security forces in Jammu and Kashmir.
The government's gesture does not mean security forces will be sitting ducks, tweeted BJP leader Ram Madhav.
The government took the views of all stakeholders before taking the decision. "There is no difference of opinion, everyone is on board," said the home ministry official. The decision was cleared by the union cabinet on Wednesday.
The army had launched 'Operation All Out', following a spike in militancy after Hizbul Mujahideen terrorist Burhan Wani was killed in an encounter in 2016.
According to official figures, 275 terrorists have been killed in Jammu and Kashmir since the operation aimed at wiping out militancy in Kashmir began in March last year. This year, 65 terrorists, including top commanders of Hizbul Mujahideen, have been killed.
The month of Ramzan that began today will end in mid-June. If the peace initiative works, the centre hopes that the annual Amarnath Yatra too will proceed peacefully.
"We keep refining our approach, nothing is static. So, even during this time it will continue," sources told NDTV.