Hello Rahul
When routers use RIPv1, they do indeed use broadcast addresses to send out RIP updates. It is also true that routers do not forward broadcast packets that they receive. This means that if a RIP router sends a RIP update out of all its configured ports, only routers that are directly connected to it will receive these updates. A router may not forward broadcasts, but it will receive them and process them if they are sent from a directly connected router.
So RIP updates are sent only to directly connected neighbouring routers, which is the required behaviour to have RIP function correctly.
I hope this has been helpful!
Laz