Step 1: Understanding the Concept:
Privy Purses were payments made to the former rulers of princely states as part of their agreement to integrate with the Indian Union.
Step 2: Detailed Explanation:
The 26th Amendment Act, 1971, was passed under the Indira Gandhi government. It omitted Articles 291 and 362 and inserted Article 363A, thereby ending the hereditary privileges and the annual payments (Privy Purses) to former royalty, aligning with the socialist goals of the government.
Step 3: Final Answer:
The 26th Amendment Act of 1971 abolished the privy purses.