Got it fixed.
Actually, it was not the problem of iptables. Again it was due to the known bug in RHEL 6.4 on EC2 which puts wrong entries in sshd_config files. Although, I have checked this file for wrong entries in my first attempt to resolve the issue, somehow it was being created again, may be because every time I start a new machine using my AMI or new RHEL 6.4 AMI. In both cases, AMI is still registered as 6.4, though the OS on the disk is updated to 6.5. May be this was the reason that it was creating wrong entries in sshd_config. Now, again I have fixed this file for wrong entries and created new AMI using RHEL 6.5 and attached the EBS volume from instance created using my RHEL 6.4 AMI, it works fine.