Introduced in Bombay and Madras. Munro (Viceroy)
and Charles Reed recommended it.
In this, a direct settlement was made between
the government and the ryot (cultivator).
The revenue was fixed for a period not exceeding
30 years, on the basis of the quality of the soil and the nature of the crop.
It was based on the scientific rent they of Ricardo.
The position of the cultivator became more
secure but the rigid system of revenue collection often forced him into the
clutches of the money lender.
Besides this, the Government itself became a big
zamindar and retained the right to enhance revenue at will while the cultivator
was left at the mercy of its officers.