"Will updating BIOS help in fixing this problem?" No. However, it may not necessarily be hardware failure.  Power down and swap the two memory modules.  If it follows the DIMM, then replace it.  If it reports bad on the same slot (and does not follow the DIMM), then your motherboard (slot) is bad.  If the error disappears, then simply reseating the memory resolved a bad connection causing the SBE's. Once you have determined and fixed the cause of the error, then update your system firmware (BIOS, ESM, PERC, etc.) ... this can help prevent other potential issues.
 [IMAGE][IMAGE]  So its a Dell PE 2950 & the screenshots above are from Dell server manager. Will updating BIOS help in fixing this problem? Normally I would go for module replacement. Will replacement be a right thing to do?    
Dell memory DIMM failure