By default in the Windows Server 2016, only the Message Authentication SHA256 is enable and SHA is disabled. The REST connector is using "stunnel", which is the SSL/TLS tunneling framework available from Windows.
But if the REST data service provides the Cipher suites based on TLS 1.0/1.1, which does not support SHA256, the connection is failed.
Resolution:
The issue can be solved by enabling HKEY_LOCAL_MACHINE>>SYSTEM>>CurrentControlSet>>Control>>SecurityProviders>>SCHANNEL>>HASHES>>SHA in the registry.