The main objective of The Prize Chits and Money Circulation Schemes (Banning) Act, 1978 is to ban prize chit and money circulation schemes, which are considered to be a form of gambling and can be harmful to the economy.

A prize chit scheme is a scheme in which prizes are awarded to participants based on their luck. Participants in a prize chit scheme pay a certain amount of money to the organizer of the scheme, and then they are randomly selected to win prizes.

A money circulation scheme is a scheme in which money is circulated among participants in a chain-like manner. Participants in a money circulation scheme pay a certain amount of money to the organizer of the scheme, and then they recruit new participants who also pay a certain amount of money to the organizer. The organizer of the scheme then pays a certain amount of money to the participants who recruited the new participants, and so on.

The main provisions of The Prize Chits and Money Circulation Schemes (Banning) Act, 1978 include the banning of prize chit and money circulation schemes, the prohibition of advertising and promoting such schemes, and the punishment for violating the provisions of the act.

The punishment for violating the provisions of The Prize Chits and Money Circulation Schemes (Banning) Act, 1978 includes imprisonment for a term of up to 3 years and a fine of up to Rs. 10,000.