With reference to revenue collection by Cornwallis, consider the following statements:

Under the Ryotwari Settlement of revenue collection, the peasants were exempted from revenue payment in case of bad harvests or natural calamities.
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?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Correct Answer: (b) 2 only

Statement 1: Under the Ryotwari Settlement of revenue collection, the peasants were exempted from revenue payment in case of bad harvests or natural calamities.
- This statement is incorrect. Under the Ryotwari System, peasants were not exempted from paying revenue even in the event of crop failure or natural calamities. They had to pay taxes in cash, which often led to exploitation and financial distress for the peasants .
Statement 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.
- This statement is correct. Under the Permanent Settlement, if a Zamindar failed to pay the fixed revenue to the state by the specified date, his land would be confiscated and auctioned off by the British authorities .

Introduced by: Lord Cornwallis in 1793.
Regions: Initially Bengal, Bihar, and Odisha; later extended to other regions.
Key Features:
- Zamindars were recognized as the owners of the land with hereditary rights.
- They had to pay a fixed revenue to the British government.
- If they failed to pay, their land would be auctioned.
- The system aimed to create a loyal class of landlords who would support British rule.
- The revenue demand was fixed permanently, which meant it could not be increased in the future .

Introduced by: Sir Thomas Munro in the early 19th century.
Regions: Practiced in Madras, Bombay, Assam, and Coorg.
Key Features:
- Peasants (Ryots) were recognized as the owners of the land.
- They paid revenue directly to the government.
- The revenue rates were high and could be increased.
- Peasants had to pay taxes in cash, leading to exploitation by moneylenders.
- There were no middlemen like Zamindars in this system .

Introduced by: Holt Mackenzie in 1822.
Regions: North-Western Provinces, Punjab, and parts of Central India.
Key Features:
- Land was owned collectively by the village (Mahal).
- Revenue was collected by the village headman on behalf of the entire village.
- The revenue demand was periodically revised, not fixed permanently.
- Aimed to combine elements of both Zamindari and Ryotwari systems .