RSS is nothing but a type of web feed which allows users and applications to access updates to online content in a standardized, computer-readable format. These feeds allows a user to keep track of many different websites in a single news aggregator.
We need to know what is SEO?
SEO stands for Search Engine Optimization. It is the practice of growing the quantity and quality of traffic to your website through organic search engine results.
The most important topic for any website owner is that of SEO (search engine optimization). This is the power of a site to rank high for particular search terms in search engine results. If you do not rank well in search, you may be restricting your traffic considerably.
RSS feeds can help a site ranking, but indirect way. Apparently if you are directing multiple feeds to your page, it is not practical or useful to take all the links and rewrite the content on your own pages.
If included RSS feeds are customized, they will contain a flow of keywords that you will not necessarily rank for. If these keywords are associated semantically (by meaning) to other words and phrases on your site, they will be seen as related. The freshness of information is also take a big role on how well your pages will rank. Presence of RSS feed on the page means you are getting information from somewhere. Normally the information will be a blog, news, search results or product review or something that is updated regularly (as opposed to static content).
Information from Google:
Google does not talk about exactly how they treat SEO and RSS feeds. The only known ranking factor relating to RSS feeds is based on how many subscribers your feed has. The more people use your feed, the rank will become more higher. Unless you have significant subscriber numbers, it is only a minor ranking factor.
The important to note is that the SEO value is directed to the source of the RSS feed – in other words, if you publish RSS on your site, the site which delivers the RSS feed to your RSS widget gets the SEO value and faster indexing than otherwise they might. This also means that publishing a widget with RSS feed from your blog onto your homepage is a good way to get fast and thorough indexing of pages by Google.