I know it will automatically get updated when we update our blog.But want to know more on it . How it benefits in SEO ? How can it bring traffic ? Is it the best way to get traffic for blogs ?
Yes, it is a way to get traffic. There is RSS readers, blog syndication sites (www.blogrush.com) which use RSS. So... to get more traffic, you should be "open". If you have only 1 way to "access" your site, you are limited. If you have RSS, newsletter.... you will get more traffic, because you can "promote" the site easy.
RSS doesn't have direct effect on SEO. But submitted RSS for RSS directories increase traffic and indexes posts quickly. Moreover, subscribing RSS feed allows visitors informed even if they don't visit your website. Best way to learn more about RSS is to search in Google - there are tons of information allover internet.