diff --git a/src/psbt.c b/src/psbt.c
index bb6b33492..4acde0efc 100644
--- a/src/psbt.c
+++ b/src/psbt.c
@@ -1154,7 +1154,7 @@ static int psbt_init(uint32_t version, size_t num_inputs, size_t num_outputs,
     if ((version != PSBT_0 && version != PSBT_2) || !psbt_out)
         return WALLY_EINVAL; /* Only v0/v2 are specified/supported */
     if (num_inputs > TX_MAX_INPUTS || num_outputs > TX_MAX_OUTPUTS)
-        return WALLY_EINVAL; /* Resulting tx could not fit in a block */
+        return WALLY_EINVAL; /* Resulting tx would be non-standard */
 #ifdef BUILD_ELEMENTS
     if (flags & ~WALLY_PSBT_INIT_PSET ||
         (flags & WALLY_PSBT_INIT_PSET && version != PSBT_2))
diff --git a/src/transaction.c b/src/transaction.c
index 23e81cdfd..66cff32cf 100644
--- a/src/transaction.c
+++ b/src/transaction.c
@@ -1162,9 +1162,6 @@ static int tx_init_alloc(uint32_t version, uint32_t locktime,
     struct wally_tx_output *new_outputs = NULL;
 
     OUTPUT_CHECK;
-    if (inputs_allocation_len > TX_MAX_INPUTS ||
-        outputs_allocation_len > TX_MAX_OUTPUTS)
-        return WALLY_EINVAL; /* Tx cannot fit in a block: invalid */
     OUTPUT_ALLOC(struct wally_tx);
 
     if (inputs_allocation_len) {
@@ -1202,6 +1199,9 @@ int wally_tx_init_alloc(uint32_t version, uint32_t locktime,
                         size_t outputs_allocation_len,
                         struct wally_tx **output)
 {
+    if (inputs_allocation_len > TX_MAX_INPUTS ||
+        outputs_allocation_len > TX_MAX_OUTPUTS)
+        return WALLY_EINVAL; /* Non-standard tx: invalid */
     return tx_init_alloc(version, locktime,
                          inputs_allocation_len, outputs_allocation_len,
                          TX_MAX_INPUTS_ALLOC, TX_MAX_OUTPUTS_ALLOC, output);