With reference to revenue collection by Cornwallis, consider the following statements: 1. Under the Ryotwari Settlement of revenue collection, the peasants were exempted from revenue payment in case of bad harvests or natural calamities. 2. Under the Permanent Settlement in Bengal, if the Zamindar failed to pay his revenues to the state, on or before the fixed date, he would be removed from his Zamindari. Which of the statements given above is/are correct?

Updated 11 Apr 2026 · From UPSC Prelims GS Paper I 2024, Q7

Contents16
UPSC Prelims GS2024Modern Indian History
  1. A1 only
  2. B2 only
  3. CBoth 1 and 2
  4. DNeither 1 nor 2
Show answer

Answer: (B) 2 only

Correct Answer: (b) Statement 2 only.

Statement 1:
Under Ryotwari, peasants were exempted during bad harvests — ✗ WRONG.
There was no such exemption.
Peasants were forced to pay revenue even during famines, which was one of the cruelties of the system.

Statement 2:
Under Permanent Settlement, if the Zamindar failed to pay on time, he could lose his Zamindari — ✓ CORRECT.
Lord Cornwallis introduced the Permanent Settlement in Bengal in 1793.
If a Zamindar could not pay the fixed revenue by the due date, his land would be auctioned off.

Key contrast:

  • Ryotwari = peasant pays directly to government (no middleman).
  • Permanent Settlement = Zamindar collects from peasants, pays government a fixed amount.
Why this was asked

The Permanent Settlement created a rigid system where zamindars lost their estates if they missed even one revenue payment deadline, leading to frequent land auctions in Bengal.

UPSC is testing whether students can distinguish between the Ryotwari system (direct peasant-government payment) and Permanent Settlement (zamindar as middleman), since students often confuse the harsh features of each system.

Permanent Settlement in Bengal

Modern Indian History Permanent Settlement Bengal Zamindar

Permanent Settlement in Bengal (1793): Features & UPSC Traps

Must know

Introduced by Lord Cornwallis in 1793 in Bengal, Bihar, and Orissa

Fixed revenue amount decided permanently - no increase allowed

Zamindar = middleman who collects from peasants, pays government

Sunset Law: Payment due by sunset on fixed date, or lose zamindari

Context

Lord Cornwallis introduced the Permanent Settlement in Bengal in 1793 to create a stable revenue system and develop a loyal landowning class. Unlike other systems, the revenue amount was fixed forever.

Key Features

Aspect

Details

Impact

Revenue Amount

Fixed permanently - no future increase

Government lost potential income from prosperity

Payment System

Zamindar pays government, collects from peasants

Created middleman exploitation

Sunset Law

Payment due by sunset on fixed date

Zamindari auctioned if payment delayed

Land Ownership

Zamindars became proprietors of land

Created new landowning aristocracy

Area Coverage

Bengal, Bihar, Orissa (about 19% of British India)

Limited geographical scope

Critical Consequences

No exemptions for natural calamities - zamindars had to pay even during famines or floods

Peasant exploitation increased - zamindars squeezed ryots to meet fixed government demands

Government revenue capped permanently - could not benefit from agricultural growth or inflation

Absentee landlordism developed as zamindars moved to cities, leaving agents to manage estates

Exam traps

Trap: Confusing Permanent Settlement with Ryotwari - in Permanent Settlement, zamindar is the middleman, not direct peasant-government contact

Trap: Assuming exemptions for bad harvests - no such provision existed under any British land revenue system

Trap: Mixing up the introducer - Cornwallis introduced Permanent Settlement, Thomas Munro developed Ryotwari

Trap: Sunset Law confusion - payment was due by sunset, not sunrise or end of month

Ryotwari Settlement System

Modern Indian History Ryotwari Settlement

Ryotwari Settlement System: Direct Revenue Collection

Must know

Developed by Thomas Munro in Madras Presidency around 1820

Direct settlement between government and individual peasant (ryot)

No middleman like zamindar - peasant owns land and pays directly

No exemptions for bad harvests or natural calamities

Basic Concept

Ryotwari means 'of the ryot (peasant)'. Thomas Munro developed this system to eliminate middlemen and establish direct relationship between government and cultivator.

System Features

Feature

Ryotwari System

Key Point

Who Pays

Individual peasant (ryot)

No zamindar middleman

Land Ownership

Peasant = proprietor of his plot

Could sell, mortgage, or gift land

Revenue Assessment

Periodically revised (usually 20-30 years)

Not permanent like Bengal

Payment Flexibility

No exemptions for crop failure

Had to pay even during famines

Geographic Coverage

Madras, Bombay Presidencies mainly

About 51% of British India

Harsh Realities

Revenue demand remained fixed regardless of crop yield or weather conditions

Peasants forced to borrow from moneylenders at high interest during bad years

Land sales increased as peasants couldn't meet revenue demands during droughts

Cash crop cultivation promoted to generate money for revenue payments

Exam traps

Major Trap: Statement 1 in the question - Ryotwari had NO exemptions for bad harvests, this was its major criticism

Trap: Confusing with Permanent Settlement - Ryotwari has no zamindar, peasant deals directly with government

Trap: Assuming it was more humane - despite direct contact, revenue pressure was equally harsh

Trap: Geographic confusion - Ryotwari was mainly in South and West India, not Bengal

British Land Revenue Systems Comparison

Modern Indian History

British Land Revenue Systems: Complete Comparison

Must know

Three main systems: Permanent Settlement, Ryotwari, and Mahalwari

All systems aimed at maximum revenue extraction from Indian agriculture

No system provided relief during famines or natural disasters

Three Systems Compared

System

Who Pays

Area

Introducer

Revenue Nature

Permanent Settlement

Zamindar (middleman)

Bengal, Bihar, Orissa (19%)

Lord Cornwallis (1793)

Fixed permanently

Ryotwari

Individual peasant

Madras, Bombay (51%)

Thomas Munro (1820)

Revised periodically

Mahalwari

Village community

North-West, Punjab (30%)

Holt Mackenzie (1822)

Revised periodically

Common Features - All Systems

High revenue demands - typically 50-60% of gross produce value

No consideration for crop failures - payment required regardless of harvest

Cash payment mandatory - forced peasants to sell crops immediately

Land became commodity - could be bought, sold, and auctioned for revenue default

Geographic Distribution

Geographic spread of British land revenue systems - no system covered all of India
Geographic spread of British land revenue systems - no system covered all of India

Source: x.com — British colonial administration introduced three major land ... · x.com

Exam traps

Major Trap: Assuming any system had harvest exemptions - none did, this was universal colonial exploitation

Trap: Confusing introducers - Cornwallis (Permanent), Munro (Ryotwari), Mackenzie (Mahalwari)

Trap: Percentage coverage - Ryotwari was largest (51%), not Permanent Settlement

Trap: Revenue nature - only Permanent Settlement had fixed revenue, others were revised

Lord Cornwallis Administrative Reforms

Modern Indian History Cornwallis

Lord Cornwallis (1786-1793): Administrative Reforms

Must know

Governor-General from 1786-1793 - known as the 'Father of Civil Service in India'

Introduced Permanent Settlement (1793) in Bengal for land revenue

Separated revenue and judicial functions - ended Collector's judicial powers

Good to know

Established modern police system with regular salaries

Background

Lord Cornwallis came to India after the American War of Independence (where he surrendered at Yorktown). He focused on administrative efficiency and corruption control in the East India Company's administration.

Major Reforms

Reform Area

Key Changes

Impact

Civil Service

Europeans only for senior posts, merit-based promotion

Excluded Indians but reduced corruption

Judicial System

Separated from revenue collection, established district courts

Better justice delivery

Police System

Regular police force with fixed salaries

Reduced dependence on local militia

Land Revenue

Permanent Settlement in Bengal (1793)

Created loyal zamindar class

Trade Regulation

Private trade by Company servants banned

Reduced conflicts of interest

Administrative Principles

Separation of powers - revenue, judicial, and executive functions separated

Rule of law - same laws applied to all Europeans in India

Bureaucratic efficiency - fixed salaries, clear hierarchies, written procedures

Exclusion of Indians - only Europeans could hold positions above ₹500 per month

Exam traps

Trap: Cornwallis created Permanent Settlement, not Ryotwari - that was Thomas Munro

Trap: His reforms excluded Indians from senior civil service - not inclusive

Trap: Known as 'Father of Civil Service', not 'Father of Local Government' (that's Lord Ripon)

Trap: Tenure was 1786-1793, returned briefly in 1805 but died same year