Explanation:

• Statement 1 is incorrect: It was introduced in Madras and Bombay Presidencies in the beginning of 19th century whereas; Permanent Settlement was introduced in Bengal in the late 18th century.
• Statement 2 is correct: Under Ryotwari system, revenue was initially collected from each village separately, but later each cultivator or ‘ryot’ was assessed individually.
• Thus, peasants not zamindars were established as property owners.
• Although this system increased the revenue collected by the state, the assessments were faulty and the peasants overburdened by the taxes.
• The landed intermediaries continued to fl ourish.
• Ryotwari Settlement It was introduced by Reed and Munro in parts of Madras and Bombay Presidencies in the beginning of 19th century.
• Under the system, the cultivator was to be recognized as the owner of his plot of land subject to the payment of land revenue.
• The settlement under this system was not made permanent; but was reviewed periodically after 20-30 years when the revenue demand was usually raised.
• The Ryotwari settlement did not bring into existence a system of peasant ownership.
• The peasants soon discovered that the large number of zamindars have been replaced by the one giant zamindari – the state.
• In fact, the Government later openly claimed that land revenue was rent and not a tax.
• The ryot’s right of ownership of his land was also negated by three other factors: In most areas the land revenue fi xed was exorbitant; the ryot was hardly left with bare maintenance even in the best of seasons.
• The Government retained the right to enhance land revenue at will. The ryot had to pay revenue even when his produce was partially or wholly destroyed by drought or fl oods.