Notes: In 1772, Warren Hastings became the Governor -General of Bengal Presidency. He observed that the financial position of the British East India Company became worse and the difficulties were intensified by famine. Hence, he abolished the dual system of administration that was introduced by Robert Clive. Form there onwards, the East India Company act as Diwan and undertook the collection of revenue by its own agents. He not only abolished dual system but also reduced the Nawab’s allowance of Rs. 32 lakhs of rupees to half that amount. He also stopped the annual payment of Rs. 26 lakhs given to the Mughal Emperor.