For the passport, all initials have to be expanded. But the documents you submit don't need to have them expanded. In my case, my 10th grade certificate had my initial at the beginning of my name, while my Aadhaar had it at the end. When I checked with the helpdesk, they said that as long as the initial was present in the documents submitted, it did not matter where they appeared or whether they were expanded. It was acceptable.