The PSB system was introduced in India in 1793 with the active support and participation of Lord Cornwallis. England’s prevailing system, associated with land revenue is one of the main sources of the emergence of the PSB system. This system of England presents maximum benefits to the property owners, as they were the permanent master of all of their individual holdings. In return, the property owners used to collect taxes and revenues from all peasants and take care of their interests.
The PSB system was introduced in India in 1793 with the active support and participation of Lord Cornwallis. England’s prevailing system, associated with land revenue is one of the main sources of the emergence of the PSB system. This system of England presents maximum benefits to the property owners, as they were the permanent master of all of their individual holdings. In return, the property owners used to collect taxes and revenues from all peasants and take care of their interests.
There was already a class of Zamindars in Bengal, Odisha and Bihar. They used to collect revenue and taxes from the peasants on behalf of representatives of the Mughal emperor or even for the Diwans. This class was one of the most prestigious and powerful classes of then India. At the time of Buxar, in 1764, Diwani of Bengal was granted to the EIC. Lack of knowledge regarding local laws and customs was causing difficulties for the British tax collectors.
Figure 1: Areas in which PSB was introduced
On the other hand, at that time in 1770, Bengal was suffering from excessive famine as well. Such difficult situations were the main reason behind generating a more convenient system for the British rulers to collect land revenue. Some steps to improve such crucial conditions were taken by Warren Hastings but almost all went in vain because of low adaptability and appropriateness. After several disagreements and trials, Lord Cornwallis came to decision about implementing PSB in 1786. This idea was a combined proposal of William Pitt and Cornwallis. In 1793, “the Permanent Settlement Act” was introduced and this system came into actual effect.
The PSB possess certain features that helped it to influence directly the overall condition of the British rule in India. Some key features of PSB are mentioned as follows.
The zamindars and proprietors became the true owners of their individual land.
Proper heredity rights regarding the succession of individual land are also provided by the PSB system.
All the zamindars were provided the authority to sell their lands as per their wishes.
The range of zamindar’s proprietorship was settled up to the proper payment of fixed revenue. Any failure of payment used to lead to the cease of zamindaris.
The rate of payable taxed was fixed and in any situation, this rate was not going to be changed. At the time of famine or any environmental disasters as well, the tax rate was not reduced.
The amount of tax was the 10/11th portion of total revenue for the British government. 1/10 portion of revenue was settled for the zamindars. This rate was higher than England's prevailing rates.
It was the zamindar’s duty to provide patta to the tenants. This description includes all details of the provided land and the exact rate of tax that the tenant had to pay to the zamindars.
There are certain merits to introducing the PSB system for Indians. These are as follows.
The main responsibility of taking proper care of the farmers fell on Indian proprietors. The zamindars were the son of the soil and this provided benefits to understanding the local norms and solving any issue regarding tax collection systems.
The PSB system, being permanent had given a sense of security to the farmers and the tax collectors as well. The EIC was also sure about the exact amount of tax that it would get at a certain time. Both the farmers and the proprietors are assured about their real holdings and the rent portion as well.
The zamindars were interested in improving the condition of farmers so that their benefits can remain intact.
There are some important demerits of PSB as well.
Different natures of Zamindars were creating difficulties for the farmers.
A class of proprietor’s heredity was introduced that formed a sense of aristocracy.
British administration used to prefer zamindars and as a result, all of the zamindars supported the British at the time of the Indian freedom struggle
The land assessment was done in an improper way that disrupts arbitrarily. Thai leads to generating both productive and unproductive land revenue.
This system was a huge loss of governmental revenue.
The rate of the land revenue was very high and as a result, most of the zamindars are led to become defaulters. This system influences negatively on the overall Indian controlling system of the British.
PSB was introduced in India by the British government and was followed by Lord Cornwallis. The settlement first introduced in some areas in India and later had affected northern Madras' presidency and some other places. This settlement was mainly an agreement between the Indian Zamindars and the East India Company that aimed to fix all land revenue-related issues. It is recorded that around 19% of British India was followed by and under the permanent settlement. In India, the hereditary class of Indian landlords was created by Lord Cornwallis which was an important part of the Indian Zamindary system.
Q1. What is the reason behind naming the Jamindary system as the permanent settlement?
According to British officials, investing in trade, agriculture and revenue resource was beneficial as an overall financial benefit can be improved by all this investment. Therefore, the main reason for introducing this system was to ensure fixed revenue and to secure the property rights of citizens.
Q2. What are the other most important names of “permanent settlement”?
This settlement in the British era was known differently in different states. Some of this system’s most popular names were Istamrari, Zamindari, Jagirdari, Bishvedari and Malguzari.
Q3. What was the most important impact of permanent settlement on Bengal?
PSB possesses a certain amount of advantages as most of the proprietors were promoted to higher ranks. The proprietors became active supporters of the British.
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