diff --git a/src/wallet/rpcwallet.cpp b/src/wallet/rpcwallet.cpp
index 0dd854bf9f4..8d9b67d82fe 100644
--- a/src/wallet/rpcwallet.cpp
+++ b/src/wallet/rpcwallet.cpp
@@ -4068,7 +4068,7 @@ UniValue walletcreatefundedpsbt(const JSONRPCRequest& request)
     const CTransaction txConst(*psbtx.tx);
 
     // Fill transaction with out data but don't sign
-    bool bip32derivs = request.params[4].isNull() ? false : request.params[5].get_bool();
+    bool bip32derivs = request.params[4].isNull() ? false : request.params[4].get_bool();
     FillPSBT(pwallet, psbtx, &txConst, 1, false, bip32derivs);
 
     // Serialize the PSBT
diff --git a/test/functional/rpc_psbt.py b/test/functional/rpc_psbt.py
index f847a01e59e..d558de5fe12 100755
--- a/test/functional/rpc_psbt.py
+++ b/test/functional/rpc_psbt.py
@@ -143,17 +143,19 @@ class PSBTTest(BitcoinTestFramework):
         # replaceable arg
         block_height = self.nodes[0].getblockcount()
         unspent = self.nodes[0].listunspent()[0]
-        psbtx_info = self.nodes[0].walletcreatefundedpsbt([{"txid":unspent["txid"], "vout":unspent["vout"]}], [{self.nodes[2].getnewaddress():unspent["amount"]+1}], block_height+2, {"replaceable":True})
+        psbtx_info = self.nodes[0].walletcreatefundedpsbt([{"txid":unspent["txid"], "vout":unspent["vout"]}], [{self.nodes[2].getnewaddress():unspent["amount"]+1}], block_height+2, {"replaceable":True}, False)
         decoded_psbt = self.nodes[0].decodepsbt(psbtx_info["psbt"])
-        for tx_in in decoded_psbt["tx"]["vin"]:
+        for tx_in, psbt_in in zip(decoded_psbt["tx"]["vin"], decoded_psbt["inputs"]):
            assert_equal(tx_in["sequence"], MAX_BIP125_RBF_SEQUENCE)
+           assert "bip32_derivs" not in psbt_in
         assert_equal(decoded_psbt["tx"]["locktime"], block_height+2)
 
         # Same construction with only locktime set
-        psbtx_info = self.nodes[0].walletcreatefundedpsbt([{"txid":unspent["txid"], "vout":unspent["vout"]}], [{self.nodes[2].getnewaddress():unspent["amount"]+1}], block_height)
+        psbtx_info = self.nodes[0].walletcreatefundedpsbt([{"txid":unspent["txid"], "vout":unspent["vout"]}], [{self.nodes[2].getnewaddress():unspent["amount"]+1}], block_height, {}, True)
         decoded_psbt = self.nodes[0].decodepsbt(psbtx_info["psbt"])
-        for tx_in in decoded_psbt["tx"]["vin"]:
+        for tx_in, psbt_in in zip(decoded_psbt["tx"]["vin"], decoded_psbt["inputs"]):
             assert tx_in["sequence"] > MAX_BIP125_RBF_SEQUENCE
+            assert "bip32_derivs" in psbt_in
         assert_equal(decoded_psbt["tx"]["locktime"], block_height)
 
         # Same construction without optional arguments