Error : "The local policy of this system does not permit you to logon interactively" during RDC

If you are trying to use the Remote Desktop Connection tool to connect to your another system you may receive the following error message: “The local policy of this system does not permit you to logon interactively.”
All the below mention procedure needs to be carried out on the Remote Machine that you are trying to connect using Remote Desktop Connection tool. Also in order to perform below steps you will require administrative rights on the remote machine.

To resolve this issue, add user with which you are trying to connect to the Remote Desktop Users group:

1. Click Start, point to Settings, and then click Control Panel.
2. Double-click System, and then on the Remote tab, click Select Remote Users.
3. Click Add type in the user account name, and then click OK.

Also, make sure that the Remote Desktop Users group has sufficient permissions to log on through Terminal Services. To check this, follow these steps:

1. Click Start, click Run, type secpol.msc, and then click OK.
2. Expand Local Policies, and then click User Rights Assignment.
3. In the right pane, double-click Allow logon through Terminal Services. Make sure that the Remote Desktop Users group is listed.
4. Click OK.
5. In the right pane, double-click Deny logon through Terminal Services. Make sure that the Remote Desktop Users group is not listed, and then click OK. Also make sure that Group "Everyone" is not present in the list. If Group "Everyone" is listed then select the group and Click Remove. Now Click Apply and OK.
6. Close the Local Security Settings snap-in.