diff --git a/src/cryptonote_core/tx_pool.cpp b/src/cryptonote_core/tx_pool.cpp
index c49a3dabc..a7b2e4422 100644
--- a/src/cryptonote_core/tx_pool.cpp
+++ b/src/cryptonote_core/tx_pool.cpp
@@ -210,7 +210,7 @@ namespace cryptonote
     // TODO: Investigate why not?
     if(!kept_by_block)
     {
-      if(have_tx_keyimges_as_spent(tx))
+      if(have_tx_keyimges_as_spent(tx, id))
       {
         mark_double_spend(tx);
         LOG_PRINT_L1("Transaction with id= "<< id << " used already spent key images");
@@ -253,7 +253,7 @@ namespace cryptonote
         meta.last_relayed_time = time(NULL);
         meta.relayed = relayed;
         meta.set_relay_method(tx_relay);
-        meta.double_spend_seen = have_tx_keyimges_as_spent(tx);
+        meta.double_spend_seen = have_tx_keyimges_as_spent(tx, id);
         meta.pruned = tx.pruned;
         meta.bf_padding = 0;
         memset(meta.padding, 0, sizeof(meta.padding));
@@ -1098,30 +1098,32 @@ namespace cryptonote
     return m_blockchain.get_db().txpool_has_tx(id, tx_category);
   }
   //---------------------------------------------------------------------------------
-  bool tx_memory_pool::have_tx_keyimges_as_spent(const transaction& tx) const
+  bool tx_memory_pool::have_tx_keyimges_as_spent(const transaction& tx, const crypto::hash& txid) const
   {
     CRITICAL_REGION_LOCAL(m_transactions_lock);
     CRITICAL_REGION_LOCAL1(m_blockchain);
     for(const auto& in: tx.vin)
     {
       CHECKED_GET_SPECIFIC_VARIANT(in, const txin_to_key, tokey_in, true);//should never fail
-      if(have_tx_keyimg_as_spent(tokey_in.k_image))
+      if(have_tx_keyimg_as_spent(tokey_in.k_image, txid))
          return true;
     }
     return false;
   }
   //---------------------------------------------------------------------------------
-  bool tx_memory_pool::have_tx_keyimg_as_spent(const crypto::key_image& key_im) const
+  bool tx_memory_pool::have_tx_keyimg_as_spent(const crypto::key_image& key_im, const crypto::hash& txid) const
   {
     CRITICAL_REGION_LOCAL(m_transactions_lock);
-    bool spent = false;
     const auto found = m_spent_key_images.find(key_im);
-    if (found != m_spent_key_images.end())
+    if (found != m_spent_key_images.end() && !found->second.empty())
     {
-      for (const crypto::hash& tx_hash : found->second)
-        spent |= m_blockchain.txpool_tx_matches_category(tx_hash, relay_category::broadcasted);
+      // If another tx is using the key image, always return as spent.
+      // See `insert_key_images`.
+      if (1 < found->second.size() || *(found->second.cbegin()) != txid)
+        return true;
+      return m_blockchain.txpool_tx_matches_category(txid, relay_category::broadcasted);
     }
-    return spent;
+    return false;
   }
   //---------------------------------------------------------------------------------
   void tx_memory_pool::lock() const
diff --git a/src/cryptonote_core/tx_pool.h b/src/cryptonote_core/tx_pool.h
index ca0e50415..292d427e2 100644
--- a/src/cryptonote_core/tx_pool.h
+++ b/src/cryptonote_core/tx_pool.h
@@ -470,10 +470,11 @@ namespace cryptonote
      * @brief check if a transaction in the pool has a given spent key image
      *
      * @param key_im the spent key image to look for
+     * @param txid hash of the new transaction where `key_im` was seen.
      *
      * @return true if the spent key image is present, otherwise false
      */
-    bool have_tx_keyimg_as_spent(const crypto::key_image& key_im) const;
+    bool have_tx_keyimg_as_spent(const crypto::key_image& key_im, const crypto::hash& txid) const;
 
     /**
      * @brief check if any spent key image in a transaction is in the pool
@@ -484,10 +485,11 @@ namespace cryptonote
      * @note see tx_pool::have_tx_keyimg_as_spent
      *
      * @param tx the transaction to check spent key images of
+     * @param txid hash of `tx`.
      *
      * @return true if any spent key images are present in the pool, otherwise false
      */
-    bool have_tx_keyimges_as_spent(const transaction& tx) const;
+    bool have_tx_keyimges_as_spent(const transaction& tx, const crypto::hash& txid) const;
 
     /**
      * @brief forget a transaction's spent key images
diff --git a/tests/functional_tests/transfer.py b/tests/functional_tests/transfer.py
index c3d71aa9c..f7a39fa0c 100755
--- a/tests/functional_tests/transfer.py
+++ b/tests/functional_tests/transfer.py
@@ -55,7 +55,7 @@ class TransferTest():
 
     def reset(self):
         print('Resetting blockchain')
-        daemon = Daemon()
+        daemon = Daemon(idx = 2)
         res = daemon.get_height()
         daemon.pop_blocks(res.height - 1)
         daemon.flush_txpool()
@@ -69,7 +69,7 @@ class TransferTest():
         ]
         self.wallet = [None] * len(seeds)
         for i in range(len(seeds)):
-            self.wallet[i] = Wallet(idx = i)
+            self.wallet[i] = Wallet(idx = i + 4)
             # close the wallet if any, will throw if none is loaded
             try: self.wallet[i].close_wallet()
             except: pass
@@ -77,7 +77,7 @@ class TransferTest():
 
     def mine(self):
         print("Mining some blocks")
-        daemon = Daemon()
+        daemon = Daemon(idx = 2)
 
         res = daemon.get_info()
         height = res.height
@@ -89,7 +89,7 @@ class TransferTest():
             assert res.height == height + 80
 
     def transfer(self):
-        daemon = Daemon()
+        daemon = Daemon(idx = 2)
 
         print("Creating transfer to self")
 
@@ -508,7 +508,7 @@ class TransferTest():
     def check_get_bulk_payments(self):
         print('Checking get_bulk_payments')
 
-        daemon = Daemon()
+        daemon = Daemon(idx = 2)
         res = daemon.get_info()
         height = res.height
 
@@ -544,7 +544,7 @@ class TransferTest():
     def check_get_payments(self):
         print('Checking get_payments')
 
-        daemon = Daemon()
+        daemon = Daemon(idx = 2)
         res = daemon.get_info()
         height = res.height
 
@@ -587,7 +587,8 @@ class TransferTest():
             assert len(res.tx_blob_list) == 1
             txes[i][1] = res.tx_blob_list[0]
 
-        daemon = Daemon()
+        daemon = Daemon(idx = 2)
+        restricted_daemon = Daemon(idx = 2, restricted_rpc = True)
         res = daemon.send_raw_transaction(txes[0][1])
         assert res.not_relayed == False
         assert res.low_mixin == False
@@ -598,6 +599,18 @@ class TransferTest():
         assert res.overspend == False
         assert res.fee_too_low == False
 
+        res = restricted_daemon.send_raw_transaction(txes[0][1])
+        assert res.not_relayed == False
+        assert res.low_mixin == False
+        assert res.double_spend == False
+        assert res.invalid_input == False
+        assert res.invalid_output == False
+        assert res.too_big == False
+        assert res.overspend == False
+        assert res.fee_too_low == False
+
+        res = restricted_daemon.get_transactions([txes[0][0]])
+        assert not 'txs' in res or len(res.txs) == 0
         res = daemon.get_transactions([txes[0][0]])
         assert len(res.txs) >= 1
         tx = [tx for tx in res.txs if tx.tx_hash == txes[0][0]][0]
@@ -615,6 +628,19 @@ class TransferTest():
         assert res.fee_too_low == False
         assert res.too_few_outputs == False
 
+        res = restricted_daemon.send_raw_transaction(txes[1][1])
+        assert res.not_relayed == False
+        assert res.low_mixin == False
+        assert res.double_spend == True
+        assert res.invalid_input == False
+        assert res.invalid_output == False
+        assert res.too_big == False
+        assert res.overspend == False
+        assert res.fee_too_low == False
+        assert res.too_few_outputs == False
+
+        res = restricted_daemon.get_transactions([txes[0][0]])
+        assert not 'txs' in res or len(res.txs) == 0
         res = daemon.get_transactions([txes[0][0]])
         assert len(res.txs) >= 1
         tx = [tx for tx in res.txs if tx.tx_hash == txes[0][0]][0]
@@ -623,13 +649,13 @@ class TransferTest():
 
     def sweep_dust(self):
         print("Sweeping dust")
-        daemon = Daemon()
+        daemon = Daemon(idx = 2)
         self.wallet[0].refresh()
         res = self.wallet[0].sweep_dust()
         assert not 'tx_hash_list' in res or len(res.tx_hash_list) == 0 # there's just one, but it cannot meet the fee
 
     def sweep_single(self):
-        daemon = Daemon()
+        daemon = Daemon(idx = 2)
 
         print("Sending single output")
 
@@ -685,7 +711,7 @@ class TransferTest():
         assert len([t for t in res.transfers if t.key_image == ki]) == 1
 
     def check_destinations(self):
-        daemon = Daemon()
+        daemon = Daemon(idx = 2)
 
         print("Checking transaction destinations")
 
@@ -741,7 +767,7 @@ class TransferTest():
                 self.wallet[0].refresh()
 
     def check_tx_notes(self):
-        daemon = Daemon()
+        daemon = Daemon(idx = 2)
 
         print('Testing tx notes')
         res = self.wallet[0].get_transfers()
@@ -758,7 +784,7 @@ class TransferTest():
         assert res.notes == ['out txid', 'in txid']
 
     def check_rescan(self):
-        daemon = Daemon()
+        daemon = Daemon(idx = 2)
 
         print('Testing rescan_spent')
         res = self.wallet[0].incoming_transfers(transfer_type = 'all')
@@ -798,7 +824,7 @@ class TransferTest():
             assert sorted(old_t_out, key = lambda k: k['txid']) == sorted(new_t_out, key = lambda k: k['txid'])
 
     def check_is_key_image_spent(self):
-        daemon = Daemon()
+        daemon = Daemon(idx = 2)
 
         print('Testing is_key_image_spent')
         res = self.wallet[0].incoming_transfers(transfer_type = 'all')