uscis case status for premium processing is initial review

does uscis update the case status when RFE is responded.

Applied for H1b- cap exempt through premium processing on june20 2013, got RFE on july1 2013 , responded to RFE on july10, case status is still initial review.

Yes thats the normal process now a days. Once USCIS recieves the RFE response they change the status back to initial review and a new 14 day cycle starts.