Correct way to enable .htaccess in AWS Ubuntu Ubuntu 14.04.3 LTS?

I am trying to to enable .htaccess in AWS Ubuntu Ubuntu 14.04.3 LTS by changing

/etc/apache2/apache2.conf

<Directory /var/www/>
    Options Indexes FollowSymLinks
    AllowOverride None
    Require all granted
</Directory>

to

<Directory /var/www/>
    Options Indexes FollowSymLinks
    AllowOverride All
    Require all granted
</Directory>

Also mod_rewrite is enabled.

But whenever i change AllowOverride None to AllowOverride All the site goes unresponsive and it keeps on loading.

What could be the possible reason? What is the correct way to enable .htaccess?