RPA stands for Robotic Process Automation, and its application in business processes involves automating routine and rules-based tasks using software bots. RPA improves efficiency and accuracy by enabling robots to perform repetitive functions such as data entry, processing transactions, and generating reports. By automating these tasks, organizations can decrease operational costs, minimize human error, and allow employees to focus on higher-value activities that require complex decision-making and creative problem-solving, thus enhancing overall productivity.