Hello Unni
This topology shows an MPLS network where two of the P routers found within the core MPLS network function as route reflectors. This is done for BGP scalability within the MPLS network.
RRs either in a conventional or an MPLS network, are there to allow BGP to be scalable within a large network. It reduces the number of peerings necessary within the network. More on this can be found at the following post:
Now there are various ways that you can implement RRs within the MPLS network and these depend upon various factors. In this topology, it looks like the RRs are actually P routers that act both as RRs and as routers forwarding traffic as well. It is possible to have dedicated RRs that only function as RRs and don’t actually forward traffic. Other options include using the RRs for both IPv4 and VPNv4, or using them only for VPNv4 traffic.
A very comprehensive explanation of these concepts and the options available can be found at this link.
I hope this has been helpful!
Laz