Hi Madhu,
do you use the same hostname in your PI and PO systems? If not, your certificates are invalid from the point of view of your bank. Even if you have a new PO system in your environment with the same host name, you will face this error in many cases.
You need to exchange new generated certificates with your bank.
"The peer sent alert: Alert Fatal handshake failure" is the message you receive from your AS2 partner. This is not a standard message from the PO system.
The best way is to call your AS2 partner for log the error on their side. My assumption is exchanging new certificates will fix the interface communication.
Kind regards
Konrad