Through this system, the Indian Princes of these Native States were assured of protection from internal or external aggression, through deployment of company troops. In return they had to pay for the maintenance of those troops and also accept a British Resident in their court.
Through this arrangement, the Indian Princes of these Native States received protection against both internal and external threats through the presence of British troops. They were required to financially support these troops and welcome a British Resident into their courts as part of the agreement.