Step 1: Understanding the Concept:
Privy purses were payments made to the former royal families of princely states as part of their agreements to integrate with India in 1947.
Step 2: Detailed Explanation:
The Indira Gandhi government introduced the 26th Amendment Act in 1971 to fulfill the promise of social and economic equality.
This amendment:
- Abolished the privy purses (payments) and the special privileges of the former rulers.
- Deleted Articles 291 and 362 of the Constitution.
- Inserted a new Article 363A, which stated that recognition granted to rulers of Indian states shall cease and privy purses shall be abolished.
This was seen as a move toward a more egalitarian society where no citizen held special hereditary financial status.
Step 3: Final Answer:
The 26th Amendment Act, 1971, abolished the privy purses.