The diagnostic neutral beam injector (DNBI) together with a charge exchange recombination spectroscopy (CXRS) system has been used on the TCV Tokamak as a diagnostic tool for local measurements of plasma ion temperature, velocity and carbon impurity density based on analysis of the beam induced impurity radiation emission since 2000. To improve the performance of the CXRS diagnostic, several upgrades of both the optical system and the neutral beam were performed. An increase of the plasma source size together with beam optimization in 2003 resulted in a twofold increase the beam current. The RF plasma generator was replaced by an arc-discharge plasma source together with a new ion optical system (IOS) in 2006 and subsequent beam optimization is presented herein. This was designed to increase the line brightness of the beam in the CXRS observation region without increasing of the injected power (to avoid plasma perturbation by the beam). The beam characteristics are measured by a multi-chord scanning of Doppler-shifted Hα emission, thermal measurements on a movable calorimeter and visible optical measurements inside the Tokamak vessel.