slave issue with load data When I use "load data infile" on master, the data is properly transferred to slave.
But when I use "load data local infile" from remote server to master, the data does not pass on to slave.

Why does the data from remote server is not read by slave?
The LOAD DATA INFILE statement was not always replicated correctly to a slave running MySQL 5.1.42 or earlier from a master running MySQL 4.0 or earlier. When using statement-based replication, the LOAD DATA INFILE statement CONCURRENT option was not replicated. This issue was fixed in MySQL 5.1.43. This issue does not have any impact on CONCURRENT option handling when using row-based replication in MySQL 5.1 or later (See this bug report http://bugs.mysql.com/bug.php?id=34628)

Also In MySQL 5.1.52 and later, LOAD DATA INFILE is considered unsafe. It causes a warning when using statement-based logging format, and is logged using row-based format when using mixed-format logging. 

http://dev.mysql.com/doc/refman/5.1/en/replication-rbr-safe-unsafe.html