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 claimsfrom the existing ₹ 1 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

Statement 1 is incorrect: EPFO has increased theauto-settlement limit for advance claims from existing ₹1 lakh to ₹5 lakhs with fast-track disbursal within 72 hours. This move will help lakhsof EPFO members receive funds faster, especially in times of urgent need.

Statement 2 is correct: EPFO had first introduced auto-settlement of advance claims during the COVID-19 pandemic toprovide quick financial assistance to members. Since then the facility has been extended to coveradvance claims for illness, education, marriage, and housing purposes. These claims are processedautomatically by the system without any human involvement, ensuring quick turnaround andtransparency.