How did the new social groups come into being? - Vidyadip

Question

How did the new social groups come into being?

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Answer

The state depended on local bankers and mahajans for loans.
It sold the right to collect tax to the highest bidders.
These 'revenue farmers' (ijaradars) agreed to pay the state a fixed sum of money.
Local bankers guaranteed the payment of this contracted amount to the state.
In turn, the revenue-farmers were given considerable freedom in the assessment and collection of taxes.
These developments allowed new social groups, like moneylenders and bankers, to influence the management of the state’s revenue system.
It was something which had not occurred in the past.

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