yum update command returns error "[Errno -3] Error performing checksum"

Issue

• After building repository on Red Hat Enterprise Linux 6, yum client gives "[Errno -3] Error performing checksum" and "[Errno 256] No more mirrors to try" errors:

  # yum update
  Loaded plugins: rhnplugin, security
  This system is not registered with RHN.
  RHN support will be disabled.
  XXXXXXX/primary                                                                                                                   | 871 kB     00:00     
  http://xxx.xxx.xxx.xxx/repodata/primary.xml.gz: [Errno -3] Error performing checksum
  Trying other mirror.
  Error: failure: repodata/primary.xml.gz from XXXXXXX: [Errno 256] No more mirrors to try.
  

• checksum error from yum when using Satellite server

• checksum error during yum update