The RBI has relaxed norms for overseas investment by Indian corporates by raising their borrowing limit. In a notification issued from Mumbai yesterday, the RBI said that it has been decided to restore the limit of Overseas Direct Investments, ODI or Financial Commitment, FC to 400 percent of the firm's net worth under the automatic route. In the context of the prevailing macro-economic situation, the RBI had reduced the ODI limit to 100 per cent of a company's net worth from 400 per cent for all companies in August last year. This was done in order to stem the unprecedented appreciation of the dollar after the rupee touched an all-time low of 68.80.However, the apex bank has clarified that any financial commitment exceeding one billion US Dollars or its equivalent in a financial year will require prior approval of the Reserve Bank even when the total financial commitment of the Indian party is within the eligible limit.