Hi kiran,
The BKGD/MODC signal is used as a MCU operating mode select during reset. The state of this signal is latched to the MODC bit at the rising edge of RESET.
If BKGD signal is high during reset, MCU will start in Normal single chip mode – CPU will start execute user code.
If BKGD signal is low during reset, MCU will start in Special single chip mode – CPU waits for BDM commands.
Please see chapter 1.10.1 Chip Configuration Modes in RM for more details.
For simplicity, special mode is used for debugging, normal mode for run code without debugger.
I hope it helps you.
Have a great day,
RadekS
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