Which of the following statements relating to the recent steps taken by the "Employees' Provident Fund Organization (EPFO)" is/are correct?
1. EPFO has enhanced member services by increasing the auto-settlement limit for advance claims from the existing lakh to ₹ 3 lakh.
2. EPFO first introduced auto-settlement of advance claims during the COVID-19 pandemic.
Select the answer using the codes given below:

Correct option is B

The correct answer is: (b) 2 only

Explanation

• Statement 1 is incorrect: In June 2025, the EPFO significantly enhanced the auto-settlement limit for advance claims from the previous limit of ₹1 lakh to ₹5 lakh (not ₹3 lakh). This move was intended to expedite the disbursement of funds for medical emergencies, education, marriage, and housing.
• Statement 2 is correct: The auto-settlement system was first pioneered by the EPFO in April 2020 during the COVID-19 pandemic. It was initially used to provide fast-track financial assistance to members to help them tide over the economic crisis caused by the lockdown.