Thomas Munro was appointed as the Governor of Madras in 1820 A.D. He made a new system of land which was known as Ryatwari system. It was introduced in Madras and Bombay. Government decided to take land revenue from those people who themselves tilled the land. So all the middlemen between government and farmers were removed. This system was much better than the Permanent Settlement. Farmers were made owners of their land. Their revenue was fixed which was 40% to 55% of the total produce. It led to increase in income of the government.
Some defects were also there in this system. This system reduced the community feeling among the people of the village. Importance of Panchayats was reduced. Except this government started to exploit the farmers. Farmers were forced to take loans from moneylenders by mortgaging their lands to them.
