What was the 'privy purse’ in the context of the history of Modern India ?

In the context of Modern Indian history, the 'privy purse' was a grant or annual payment given by the Government of India to the erstwhile rulers of princely states [1]. Following India's independence, these rulers signed Instruments of Accession and merger agreements, effectively surrendering their sovereign rights to the Indian Union [t4]. In exchange, the government provided a fixed, tax-free amount guaranteed under Article 291 of the Constitution [1][t6]. The quantum of these payments was determined based on the state's revenue, antiquity, and status [1][c3]. While initially seen as a necessary compromise for national integration, the privy purse was later viewed as incompatible with an egalitarian social order [c2][c3]. Consequently, the system was abolished in 1971 through the 26th Constitutional Amendment Act, which inserted Article 363-A to terminate the recognition of rulers and their financial privileges [c2][t2].

Sources

1. [1] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 39: After Nehru... > Abolition of Princely Privileges > p. 687