Munro system was the similar move away from the idea of permanent settlement. As in the south there were no traditional Zamidars so, the settlement had to make directly with the cultivators. The lands were carefully surveyed before setting of the fixed revenue.

The problems created by the Munro system of fixing revenues were:

(i) Driven by the desire to increase the income from land, revenue officials (Captain Alexander Read and Thomas Munro) fixed too high a revenue demand. Peasants were unable to pay, ryots fled the countryside.

(ii) Optimistic officials had imagined that the new system would transform the peasants into rich enterprising farmers. But this did not happen instead villages became deserted in several areas.