<h1>Enforcement mechanisms within RBI code urged to support recovery while MFIs pursue stronger capital and digital collections.</h1> A call to allow enforcement mechanisms within the Reserve Bank of India code of conduct to support loan recovery, coupled with promotion of digital, cashless collection methods to improve efficiency and portfolio quality. The note also stresses the need for substantial long term equity to strengthen capital adequacy and enable MFIs to leverage bank debt, framing capital formation and prudential resilience as essential to expanding formal credit outreach.