Whether selling of ULIP and Mutual Fund through banks is healthy?

Banking sector in India has evolved over the past 2 decades,  bank customers look up to the RM  for service requirements and place immense faith on his/her advisory, the conventional philosophy of a Bank is to keep the deposits of the customer safe, provide various asset products such as mortgage loan, vehicle loan, locker facility etc., however by offering the ULIP and MF  products  they are only climbing up the value chain by entering the distribution of financial products space, which is according to me the step in the right direction however in doing so  immense care needs to be taken on the following fronts

1)  RM should be very well trained and educated on the products offerings this will ensure that the customers are always right sold the product.

2) Relevant certifications such as AMFI/ IRDA should be in place,

3)  Products being  promoted should be a function of  customer needs(RM can derive this by conducting the financial planning not just on paper but in spirit)  and not bank profitability target.

Today a very strong challenge for banks is  that RMs are expected to deal in multiple products and most often they fall short on the knowledge front while explaining a cross sell product like MF or Ins in terms of proper disclosure, charges etc, this leads to clients feeling that  products have been pushed to them,  if  banks can  overcome this challenge  then they can work as a healthy distribution point of ULIP and MF products.