Sangrash Samiti (SAYSS) in protest against the police firing on its members entered second day.
The business and trade establishments remained closed and traffic was off the road in Jammu, official sources said.
However, some buses plied to ferry Vaishnodevi pilgrims, they said.
The Jammu University examinations were cancelled on Monday and schools and other educational institutes wore a deserted look as students failed to turn up, they said.
The bandh was also observed in Kathua, Dhampur, Reasi and Rajouri, the reports reaching in Jammu said.
Effigies of governor N N Vohra were burnt in several areas of Jammu, Kathua and Udhampur districts during the protests against the police firing and cane-charging on SAYSS activists, who thronged Abhinav theatre on Saturday to honour those killed in the agitation over the shrine land issue.
"The district administrations in Jammu, Kathua, Samba and Udhampur have imposed prohibitory orders under section-144 of CPC in areas along the Jammu-Srinagar highway in the wake of the bandh call by SAYSS," the sources said.
They said that highway was open and there was no disruption of traffic due to the bandh.
Meanwhile, nine persons, including two corporaters of BJP Rajesh Gupta and Dinesh Gupta, were arrested for forcing closure of the shops in the Jammu city, they said.