The Reserve Bank of India (RBI) has eased external commercial borrowing (ECB) norms, in a bid to boost the flow of foreign funds into the country.

The central bank has increased the maximum limit to $3 billion for companies, and hiked the overseas loan cap to 75 per cent of the company's last 3-year average foreign exchange (forex) earnings.

Previously, companies were allowed to raise a maximum of 50 per cent of their average export earnings in the last three fiscal years.

Last month, the finance ministry had eased the rules for raising funds via the ECB- route by domestic companies, mainly for domestic companies in the realty sector.

Arvind Mayaram, secretary at Department of Economic Affairs, said on Tuesday ECB was one of the ways that was being considered to increase the flow of foreign funds into the country and to enhance business climate.

Speaking on the topic, Mayaram said, "We will continue to look at various spaces. ECB is one of that, not only to increase the foreign flow in the country but also to improve business climate."

Mayaram expressed hope that India's GDP would be capable of growing by six per cent in the current fiscal, which would be lower than 6.7 per cent growth rate estimated by the Prime Minister's Economic Advisory Council, but would still place the country's growth rate among the highest rates in the world.