Thanks for the reply.
The issue wasn't in regards to importing file. I accidentally had ignored a bunch of transactions in the Bank Feeds and I was trying to get them back by following the instructions on this thread by changing the <FITID> numbers in the .qbo file. I did as instructed and Quickbooks still did not show those transactions.
Instructions I followed:
How to re import web connect files
Reloading web connect files. Each transaction within the file contains a unique identifier. With a little manual manipulation you can modify this identifier and reload the file. However, be careful the purpose of this unique identifier to make sure you don't import duplicate entries.
1. Open the web connect file with the text edit.
2. Select edit>find>find and replace.
3. In the search field enter <FITID>
4. In replace field enter <FITID>1
5. Select "Replace All", then done.
6. Import the web connect file into quickbooks (file menu-> Utilities-> import->web connect)