The administration in Madhya Pradesh's Khargone lifted the curfew with immediate effect on Wednesday evening, 24 days after it was imposed following violence during a Ram Navami procession on April 10, an official said.
The prohibitory orders and all other restrictions were also removed, he said.
"The administration on Wednesday convened a peace committee meeting, which was attended by the representatives of all the communities. It was decided with consent of all that the prohibitory orders issued on April 10 should be withdrawn immediately," Sub Divisional Magistrate (SDM) Milind Dhoke told reporters after the meeting.
"The prohibitory orders under CrPC (Code of Criminal Procedure) 144 have ended from today itself. All the restrictions and curfew have been withdrawn. The situation that prevailed before April 10 has been restored," he said.
Earlier in the day, the administration had announced to relax the curfew for 11 hours - from 6 a.m. to 5 p.m.
On Tuesday, the curfew was in place for 24 hours and citizens were asked to celebrate Eid-al-Fitr and Akshaya Tritiya festivals at home.
Curfew was clamped in Khargone after the violence on April 10, during which shops and houses were damaged, vehicles torched and stones hurled.
Since April 14, the local administration has been relaxing the curfew for some hours.