Mahajani System Under Banaras Zamindari in The Eighteenth Century

Abstract

The role of Mahajans in the economy of the entire India during the Maghya period was very special. In the contemporary society, these moneylenders used to work as banks. In other words, it was an inter-provincial organization that conducted economic transactions smoothly in a less developed state of means of communication and transportation. The Mahajani system developed as a result of cash collection of land revenue, agricultural and daily needs and purchase and sale of commercial goods and taxes on its import and export. By the last decade of the 18th century, about 200 Mahajans and Sarafs were associated with the banking business of Varanasi. Generally these Mahajans belonged to the Vaishya, Agarwal Khatri etc. Bania class, however people from other classes were also engaged in this business. Muslims did not engage in it due to the prohibition of usury in Islamic practice. In 1733 AD, the establishment of a mint in Banaras increased the economic importance of the place and some more nobles joined the business here. Mahajanas played an active role not only in Varanasi, but in the entire economy of India. They contributed significantly to the government and non-government individuals in providing financial loans in trade and agriculture and in the recovery of state revenue. Along with the development of financial business with the company, the position of the Mahajans here became stronger. After the establishment of state control over European-style banks in Bengal in the last decades of the 18th century, the Mahajans were able to maintain their important position as financial managers of trade and industry, although this had an adverse effect on the financial system here. At the time of the permanent settlement of Varanasi, some of them became sureties of the Mahajan Amils. After that he joined Tehsildari. In the 50 years following permanent settlement, members of 18th-century commercial and magnanimous institutions also purchased landed property. In the presented article, an attempt has been made to know how the banking system was organized in Banaras in the 18th century, who used to fulfill the financial needs of farmers and traders, how important was the role of Mahajans in the payment of land revenue.