I went through links like: SOAPFaultException "MustUnderstand headers (oasis-200401-wss-wssecurity-secext-1.0.xsd) are not understood", but still struggling.
I was able to find the solution looking at https://docs.spring.io/spring-ws/site/apidocs/org/springframework/ws/soap/security/wss4j/Wss4jSecurityInterceptor.html and https://memorynotfound.com/spring-ws-username-password-authentication-wss4j/.
I simply used below bean and its started working fine.
@Bean
public Wss4jSecurityInterceptor securityInterceptor() {
Wss4jSecurityInterceptor security = new Wss4jSecurityInterceptor();
security.setSecurementActions("NoSecurity");
security.setSecurementPasswordType(WSConstants.PW_TEXT);
return security;
}