"530 Login incorrect" when using vsftpd in RHEL

Solution Verified - Updated -

Issue

  • Not able to login to vsftpd with a valid login and password:
# ftp localhost
Trying ::1...
Connected to localhost (::1).
220 (vsFTPd 3.0.2)
Name (localhost:root): test
331 Please specify the password.
Password:
530 Login incorrect.
Login failed.
ftp> 

Environment

  • Red Hat Enterprise Linux 6/7
  • vsftpd

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