Monetisation of the rural economy
Also called: Cash nexus · Topic: Mughal Agrarian Society and Economy · NCERT: Class 12, Ch 4 "Peasants, Zamindars and the State"
Meaning
Monetisation means that money came to be used widely in everyday buying, selling and paying. In Mughal times this reached villages, not only towns. Peasants paid revenue in cash, producers took cash loans, and banking services spread. Silver from the Americas flowed into India, and the stable silver rupya (rupee) made this possible. It is a main reason historians reject the idea of villages as cut-off, self-sufficient units.
Example
In the Mughal heartland, revenue was assessed and collected in cash. Weavers making cloth for export, and producers of cotton, silk and indigo, worked on cash advances and wages. The French traveller Tavernier noted that even a tiny village had a shroff (moneychanger-banker). Zamindars also set up haats (village markets), which helped spread the use of money further.
Don't confuse with
- Revenue only in cash: this is a common exam trap. Akbar told his collectors (amil-guzar) to prefer cash, but they could still collect revenue in kind (as a share of grain).