I e-filed my taxes for federal and state. The website shows the return status as Accepted for both and I will get the refund in 2-3 weeks.

Does that mean that IRS has "approved" my refund or just that they have received my returns and still they have to process it??

Thanks for help

IRS accepts the returns as filed unless its computers find some error. You will get the refund.
IRS can come back even after a year or more if it finds that you have some unreported income, improper deduction or credit.