# Aadhaar error penalty hiked 40-fold to Rs 1,000 hits Kerala centres 2026-08-22T05:52:35+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The Unique Identification Authority of India (UIDAI) has increased the penalty for errors in Aadhaar applications from Rs 25 to Rs 1,000 per rejected application, leaving Kerala's service centres buried in dues. Nearly Rs 13 crore in payments owed to these centres has been withheld since December 2022, while penalty arrears remain unsettled. Service centres are not allowed to charge citizens for Aadhaar enrolment or mandatory updates, and UIDAI pays them only Rs 50 per completed application. Akshaya centres, which handle the largest share of Aadhaar services in the state, are the worst hit. The Kerala government has raised the issue with the Centre but no favourable decision has been taken. Stephen John, state president of the Forum of Akshaya Centre Entrepreneurs, said centres are struggling to pay salaries and demanded that all withheld payments be returned. State officials said the outstanding penalties are nearing settlement and expressed hope that payments would be restored soon. ## Indian Opinion Analysis Akshaya centres, Kerala's flagship e-governance network, were already stretched thin by the mandatory Aadhaar seeding for welfare schemes. The penalty hike from Rs 25 to Rs 1,000 per error creates a perverse incentive: UIDAI pays Rs 50 per successful enrolment but fines Rs 1,000 per rejection, making every mistake 20 times costlier than a correct application. With nearly Rs 13 crore in payments frozen, many centres may shut, affecting the 3.5 crore residents who depend on them for Aadhaar updates. The real test is whether the upcoming state election campaign pressures the Centre to waive the penalties or release the withheld funds. ## Coverage - english.mathrubhumi.com Frames the penalty hike as abrupt and punitive, centres as victims of UIDAI's shortcomings, and the government as having taken no favourable decision. This story was synthesised by AI from the source linked above. Tags: Aadhaar, Akshaya centres, Kerala, UIDAI Canonical: https://indianopinion.org/aadhaar-error-penalty-hiked-40-fold-to-rs-1000-hits-kerala-centres/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/aadhaar-error-penalty-hiked-40-fold-to-rs-1000-hits-kerala-centres/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/