Please explain the query end to end process

Your father can transfer funds to another account at the ancestral address if he opted for a beneficiary account.

Your father may apply for transfer to the Bank where account is maintained.

Is this query a legal dispute for consideration and obligation of experts ? 

It is abuse of this platform. Admin LCI should have filtered such time pass post.

There is no problem in an individual maintaining two accounts of the same bank in two different locations. The banking guidelines may be followed as per instructions from bank for transfer from one bank to another, 

A person can have any number accounts in the same bank or in any number of banks anywhere in India. He can transfer money from any of the accounts for any purpose.