# Liberalised Remittance Scheme (LRS) - Sub-Limits & Clubbing
## Overview
The LRS permits resident individuals to remit foreign exchange for permitted current and capital account transactions, subject to an overall annual limit. Within this overall ceiling, specific sub-limits apply to certain remittance purposes.
## Key Sub-Limits Within LRS
| # | Purpose of Remittance | Sub-Limit |
|---|---|---|
| 1 | Remittance for consultancy services for Infrastructure / other consultancy projects | USD 10 million per project (Infra) / USD 1 million per project (others) |
| 2 | Reimbursement of pre-incorporation expenses | 5% of investment brought into India or USD 100,000 (whichever is higher) |
### Important Notes on Sub-Limits
1. The overall LRS limit of USD 250,000 is irrelevant for persons other than individuals (e.g., company, firm, etc.). Sub-limits stated above apply on their own merits to such persons.
2. If the Current Account Transaction (CAT) is not listed in any of the three Schedules under FEMA (Current Account Transaction) Rules, it is freely permitted.
## Clubbing of LRS Limit
- Family members can consolidate their individual LRS limits, provided each member complies with the LRS conditions individually.
- Clubbing is NOT allowed for acquisition of a Capital Asset (e.g., immovable property abroad) unless family members are co-owners of such overseas asset.
- A minor also has an LRS limit of USD 250,000.
- However, the LRS Form A2 must be countersigned by the legal guardian.
## Exceptions - No RBI Approval Required
No RBI approval is required for incurring expenses out of certain account types even if they fall under Schedule II / III:
| Account Type | Schedule II Items | Schedule III Items |
|---|---|---|
| RFC (Resident Foreign Currency) | No approval required (except agent commission or pre-incorporation expenses) | No approval required, except for Person of Indian Origin (PIO) |
| EEFC (Exchange Earners' Foreign Currency) | No approval required | No approval required, except for PIO |
| International Credit Card | Use abroad freely permitted | Can incur Schedule III expenses without approval |