Question

"Time to bust some myths about the EPF Organisation, India's only social security fund manager for non-government workers, though what follows is not published on a regular basis. Active membership is just about 5 percent, and only 17 per cent of the members account for 84 percent of the balances. That's only Rs. 20000 each ! less than 7percent have a deposit amount more than 5 lacs!"
Choose the statement closest to the idea expressed in this paragraph

• A. EPF is an efficiently managed organisation about which no one knows correctly.
• B. EPF is an inefficient organisation.
• C. EPF Organisation takes care of future fund requirements of investors adequately.
• D. EPF Organisatioin does not have enough funds to take care of secure future.

Answer 1

The Correct Option is B

Step 1: Read the passage carefully
The passage talks about the Employees’ Provident Fund (EPF) Organisation of India, which manages social security funds for non-government workers. It highlights some uncomfortable statistics: - Only about 5 percent of members are active. - Just 17 percent of members hold 84 percent of the balances. - The average deposit is only around Rs. 20,000. - Less than 7 percent of members have deposits greater than Rs. 5 lakh.

Step 2: Identify the main idea
These numbers indicate poor participation, unequal distribution of funds, and small savings for the majority of members. The author’s tone suggests dissatisfaction and criticism rather than praise. Instead of showing efficiency or wide coverage, the data exposes weaknesses and underperformance of EPF as a social security institution.

Step 3: Eliminate alternatives
- If an option suggested EPF was successful or effective, it would contradict the facts presented. - If an option only restated one statistic, it would miss the overall idea. - The closest option must reflect the critical attitude toward EPF’s functioning and its inefficiency as an organisation in providing meaningful social security to the majority.

Step 4: Justify the correct option
The statement “EPF is an inefficient organisation” aligns with the author’s purpose. By showing that only a small fraction of members are active and that benefits are concentrated among few, the passage clearly portrays inefficiency and ineffectiveness in managing social security for workers.

Final Answer: The correct option is (B) EPF is an inefficient organisation.