Want to verify self understanding of RD/RT in L2/L3 MPLS VPN context

Hello experts,

I am a new member of INE
and read about couple of courses on RD/RT BGP router configuration.

My query is on following
simple topology 

CE1-->
PE1<--------> PE2 -->CE2

My understanding is that
RD is used to distinguish different VPNs/Customers on a PE so that same IP
address could be used in 2 different VPNs/customer sites on same PE. Now the RT
is used to uniquely identify the right VRF for that VPN/customer to forward
packet on other side. If an iBGP update travel from PE1 toPE2 , the first thing
PE2 does is to stripped of the RD and based on RT information any labeled MPLS
packets will be put into right VRF to deliver to CE2. 

In the above scenario the
RT needed to be unique across all PEs. Is my understanding correct?

With regards,

 

Samarjit

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