Question

How did moneylenders and bakers achieve an influential position in the state of Awadh?

Answer 1

The state of Awadh depended on local bankers and mahajans for loans. It sold the right to collect tax to the highest bidders. These revenue farmers known as 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 made the positions of moneylenders and bankers influential. They began to influence the management of the state's revenue system.