The Ryotwari settlement was introduced in Madras and Bombay. This settlement system was implemented by the British East India Company in the 19th century. Under the Ryotwari system, individual cultivators, or ryots, were recognized as the owners of the land they cultivated. The ryots were directly responsible for paying land revenue to the British government. This settlement was different from the Zamindari system, in which intermediaries called zamindars collected land revenue from the ryots.

Option 1 (Uttar Pradesh and Punjab) is incorrect because the Ryotwari settlement was not introduced in these regions.

Option 2 (North-West Provinces and Punjab) is incorrect because although the Ryotwari settlement was introduced in Punjab, it was not introduced in the North-West Provinces.

Option 4 (Bengal and Bihar) is incorrect because the Ryotwari settlement was not introduced in these regions either.

Therefore, the correct answer is option 3 (Madras and Bombay).