Can NRIs avail loans against their bank accounts in India? If yes, then for what purposes?

There are certain banks authorised by the Reserve Bank of India that are permitted to grant loans to NRIs holding NRE, NRO and FCNR accounts in India against their security of term deposits.

NRIs can avail loans for the acquisition of flat/house in India against NRE or FCNR fixed deposits on repatriable basis, provided the amount to be repatriated is governed by Foreign Exchange Management Regulation (Acquisition and Transfer of Immovable Property in India).

Do NRIs require the prior approval of RBI for maintaining bank accounts in India?

NRIs can open and maintain bank accounts in India without the prior permission RBI.

Which all banks are authorised by the RBI for opening accounts for NRIs?

For the list of authorised dealers that can open accounts in the name of NRIs in India refer to RBI Rules (External website that opens in a new window).