After setting up the key files on both the server and the client and trying to log in, the server would still ask for the password:

debug1: read PEM private key done: type RSA
debug2: we sent a publickey packet, wait for reply
debug1: Authentications that can continue: publickey,password
debug2: we did not send a packet, disable method
debug1: Next authentication method: password
abc@xyz.intersignum.com's password:

In my case the solution was to have a look at the /var/log/auth.log file: It said something like  Authentication refused: bad ownership or modes for directory /home/... Probably I changed the mode of the home directory of the ssh user by accident. To change it back and ensure correct rights on the relevant files:


chmod go-w ~/
chmod 700 ~/.ssh
chmod 600 ~/.ssh/authorized_keys