With reference to the history of India, consider the following pairs: 1. Aurang In-charge of treasury of the State 2. Banian Indian agent of the East India Company 3. Mirasidar Designated revenue payer to the State Which of the pairs given above is/are correctly matched?

Updated 11 Apr 2026 · From UPSC Prelims GS Paper I 2020, Q9

Contents11
UPSC Prelims GS2020Modern Indian History
  1. A1 and 2 only
  2. B2 and 3 only
  3. C3 only
  4. D1, 2 and 3
Show answer

Answer: (B) 2 and 3 only

Let's match each historical term with its correct meaning:

  1. Aurang → In-charge of treasury — NOT CORRECT: "Aurang" is actually a Persian word meaning "warehouse" — a place where goods are collected before being sold.

It also refers to a workshop.

It has nothing to do with treasury management.

  1. Banian → Indian agent of the East India Company — CORRECT: Banians were Indian intermediaries who helped European merchants navigate local markets.

They served as interpreters, brokers, bookkeepers, cash managers, and general agents.

They were essential because European merchants faced language and cultural barriers in India.

  1. Mirasidar → Designated revenue payer — CORRECT: Under the Ryotwari system, Mirasidars were hereditary peasant proprietors who owned their land and paid land revenue directly to the state at fixed rates.

They could sell and transfer their land and had the right to sit in the village council.

Answer: B (2 and 3 only).

Key Takeaway: Aurang = warehouse (not treasury).

Banian = Indian agent for British traders.

Mirasidar = hereditary land-owning peasant who paid revenue.

Why this was asked

These three terms represent different layers of British colonial administration - commercial intermediaries (Banian), revenue collection systems (Mirasidar), and trade infrastructure (Aurang).

UPSC is testing whether students can distinguish between similar-sounding administrative roles and avoid confusing Persian terminology with actual functions.

Colonial Administrative Terms & Officials

Modern Indian History Aurang Banian

Colonial Administrative Terms: Aurang, Banian & Key Officials

Must know

Aurang = Persian word for warehouse/workshop, not treasury

Banian = Indian intermediary/agent for European merchants

Good to know

Banians handled interpretation, brokerage, and cash management for British traders

The East India Company relied heavily on Indian intermediaries and Persian administrative vocabulary. Understanding these terms helps decode colonial administrative structure and the Company's dependence on local expertise.

Key Colonial Terms

Term

Origin

Actual Meaning

Role/Function

Aurang

Persian

Warehouse/Workshop

Storage facility for goods before sale

Banian

Indian

Indian Agent/Broker

Intermediary between Europeans and local markets

Gomashta

Bengali

Commercial Agent

Company's Indian commercial representative

Diwan

Persian

Revenue Minister

Chief financial officer of a province

Banian Functions

Interpreters - bridged language barriers between British and local traders

Brokers - negotiated deals and found suppliers for European merchants

Bookkeepers - maintained accounts and financial records

Cash managers - handled money transactions and local banking

Cultural guides - helped Europeans navigate Indian commercial customs

Exam traps

Trap: Aurang sounds like it should relate to Mughal emperor Aurangzeb or treasury - it's actually just a warehouse

Trap: Don't confuse Banian with Baniya (trading community) - Banian is a specific colonial intermediary role

Trap: Gomashta vs Banian - Gomashta was Company's own agent, Banian was independent Indian broker

Ryotwari System & Mirasidars

Modern Indian History Mirasidar

Ryotwari System & Mirasidars: Land Revenue Under British Rule

Must know

Mirasidar = hereditary peasant proprietor who paid revenue directly to state

Ryotwari system introduced in Madras and Bombay presidencies

Good to know

Mirasidars had ownership rights - could sell, transfer, and mortgage land

System created individual land ownership replacing communal village ownership

The Ryotwari system was one of three major land revenue systems introduced by the British. Unlike Zamindari, it established direct relationship between individual cultivators and the state, creating a class of hereditary peasant proprietors called Mirasidars.

British Land Revenue Systems Comparison

System

Region

Revenue Payer

Ownership Pattern

Key Feature

Permanent Settlement

Bengal, Bihar

Zamindars

Zamindar owns land

Fixed revenue in perpetuity

Ryotwari

Madras, Bombay

Mirasidars/Ryots

Individual peasant ownership

Direct settlement with cultivator

Mahalwari

North India

Village community

Joint village ownership

Village collectively responsible

Mirasidar Rights & Features

Hereditary ownership - land could be passed to descendants

Transfer rights - could sell, mortgage, or lease the land

Revenue liability - paid land tax directly to government at fixed rates

Village council membership - had right to participate in village governance

Protection from eviction - could not be removed as long as revenue was paid

Ryotwari Revenue Collection

%%{init: {"flowchart": {"wrappingWidth": 460}}}%%
flowchart TD
  s1["`**Land Survey**
Government surveys and assesses individual plots`"]
  s2["`**Individual Settlement**
Direct agreement between state and cultivator (Mirasidar)`"]
  s3["`**Revenue Assessment**
Fixed revenue demand based on land productivity`"]
  s4["`**Direct Payment**
Mirasidar pays revenue directly to government collector`"]
  s5["`**Ownership Certificate**
Mirasidar gets legal title and ownership rights`"]
  s1 --> s2
  s2 --> s3
  s3 --> s4
  s4 --> s5
Exam traps

Trap: Mirasidar vs Zamindar - Mirasidar was small peasant proprietor, Zamindar was large landholder

Trap: Don't confuse Ryotwari with Mahalwari - Ryotwari = individual ownership, Mahalwari = village collective ownership

Trap: Mirasidars paid revenue to state - they were not revenue collectors but revenue payers

East India Company Commercial Structure

Modern Indian History East India Company

East India Company's Commercial Operations & Indian Intermediaries

Must know

East India Company relied on Indian intermediaries for local trade operations

Language and cultural barriers made Indian agents essential for European merchants

Good to know

Company's factory system required local commercial networks and expertise

The East India Company faced massive challenges operating in Indian markets due to language barriers, unfamiliar commercial practices, and complex local trade networks. This created a crucial dependence on Indian commercial intermediaries who became the backbone of Company operations.

Company's Indian Intermediaries

# East India Company Commercial Network
## **Banians**
- Brokers & Agents
- Interpreters
- Cash Managers
- Market Guides
## **Gomashtas**
- Company Agents
- Procurement Officers
- Quality Controllers
- Local Supervisors
## **Dalals**
- Commission Agents
- Market Information
- Price Negotiators
- Trade Facilitators
## **Shroffs**
- Money Changers
- Bankers
- Credit Providers
- Currency Experts

Why Intermediaries Were Essential

Language barrier - Europeans couldn't communicate with local producers and traders

Commercial customs - Indian trade practices were completely different from European methods

Credit networks - Local banking and financing systems were unknown to Europeans

Quality assessment - Europeans couldn't judge quality of Indian textiles, spices, and goods

Regional variations - Each region had different weights, measures, and commercial practices

Company Factory System

The Company's factory system depended entirely on Indian intermediaries to connect European merchants with local producers
The Company's factory system depended entirely on Indian intermediaries to connect European merchants with local producers

Source: EconAir — The English East India Company (EIC): Trade with India and Asia · bennettgreenberg.blogspot.com