Deposits in rural banks are also covered by the Deposit Insurance corporation of Govt. Of India.

We understand that the insurance covers now more than Rs.1 Lakh. So also is the case of deposits with a Scheduled Bank whether it is a nationalized Bank or private sector Bank. You can safely invest in FD with the Rural Bank. Reserve Bank won't allow any bank's loss to deny the repayment of deposits of customers.

as you have satisfied yourself that the bank is owned by the government and also a nationalized bank, you may or may not transfer the deposits.

1) No one

2)Govt

3) insurance company if deposits have been insured by the Bank