Right attitude needed

This refers to ‘Customer service in banks: Mind the behaviour gap’ (June 16). The impact of well-considered suggestions for changing the mindset and behaviour of bank employees can be strengthened further by focusing on changing their attitude.

For example, do bank staff consider their visitors as customers, or as needy depositors coming to banks to benefit from their services? The chosen attitude will determine their behaviour.

Attitudinal change is not an easy task as attitudes are deeply ingrained, but training interventions like sensitivity training and feedback from customers derived from regular customer satisfaction surveys can be helpful.

YG Chouksey

Pune

The China factor

Apropos, ‘Dealing with China’s coercion’, (June 16), as China tightens its grip on global rare earth supply chains, India must diversify its sourcing strategies to safeguard critical technologies and industries.

Through bilateral agreements with resource-rich nations like Australia, Brazil, and African states, India can establish resilient supply corridors. Simultaneously, investing in domestic exploration, refining capabilities, and recycling infrastructure will reduce long-term dependency.

Such a pivot not only ensures economic security but also dilutes China’s monopolistic leverage. Ironically, by weaponizing rare earths, Beijing may accelerate global decoupling and undermine its dominance.

Strategic diversification, therefore, is not just a necessity for India — it’s a geopolitical counterstroke that could boomerang on China’s ambitions.

N Sadhasiva Reddy

Bengaluru

Oil worries

This refers to ‘Blocked channels’ (June 16). While the RBI recently shifted its monetary policy stance from ‘accommodative’ to ‘neutral’, based on evolving inflation and growth data, the anticipated stability in policy rates faces considerable risks from global geopolitical developments.

The ongoing tensions in West Asia, particularly the intensifying Israel-Iran conflict, are expected to exert raise crude oil prices, an area of concern given crude oil’s significant share in India’s import basket.

Volatility in global crude markets will likely impact India’s exchange rate dynamics, particularly as the US adopts a tougher posture on trade issues. Concurrently, Foreign Institutional Investor (FII) outflows have added further pressure on the rupee.

Although a potential 50-basis-point repo rate cut may offer relief to borrowers by reducing lending costs, it could adversely affect savers by lowering deposit rates substantially.

While the RBI’s monetary policy actions currently emphasise supporting growth over curbing inflation, robust capital expenditure and a revival in consumption demand are crucial to sustain GDP growth.

In view of the uncertain global outlook, especially with the Israel-Iran conflict posing risks to economic stability, the challenges before the RBI are complex. It must continue to calibrate its policy actions by weighing both domestic economic indicators and increasingly unpredictable global factors.

Srinivasan Velamur

Chennai

Published on June 16, 2025