- Introduced by Lord Cornwallis in Bengal, Bihar, and Odisha in 1793.
- Aimed to impart stability to the revenue system.
- Landlords were accepted as owners of the land, replacing peasants.
- Revenue was collected from landlords, not directly from farmers.
- Zamindars’ ownership rights became hereditary and transferable.
- This system distorted land rights of peasants.
- It led to exploitation of farmers by landlords and moneylenders.