Dear Naresh, it is not necessary to have a local bank account. If it is a National bank, any branch is allowed. Having said that, it is good if you have the same State's bank account of you are receiving scholarship from the State Government. You needn't necessarily have a bank account in Ballia but it is good if you have a UP account because in the future if they need bank account details, you needn't run all the way to your original back account branch.