diff --git a/docker-compose-postgresql.yml b/docker-compose-postgresql.yml
index e4a01e773..2d8e15965 100644
--- a/docker-compose-postgresql.yml
+++ b/docker-compose-postgresql.yml
@@ -94,3 +94,4 @@ services:
       - FINERACT_DEFAULT_TENANTDB_IDENTIFIER=default
       - FINERACT_DEFAULT_TENANTDB_NAME=fineract_default
       - FINERACT_DEFAULT_TENANTDB_DESCRIPTION=Default Demo Tenant
+      - JAVA_TOOL_OPTIONS="-Xmx1G"
diff --git a/docker-compose.yml b/docker-compose.yml
index 3efbb7888..08e0cc6b5 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -90,3 +90,4 @@ services:
       - FINERACT_DEFAULT_TENANTDB_IDENTIFIER=default
       - FINERACT_DEFAULT_TENANTDB_NAME=fineract_default
       - FINERACT_DEFAULT_TENANTDB_DESCRIPTION=Default Demo Tenant
+      - JAVA_TOOL_OPTIONS="-Xmx1G"
diff --git a/fineract-provider/build.gradle b/fineract-provider/build.gradle
index dbef441d2..3104bd5d9 100644
--- a/fineract-provider/build.gradle
+++ b/fineract-provider/build.gradle
@@ -256,7 +256,6 @@ jib {
         creationTime = 'USE_CURRENT_TIMESTAMP'
         mainClass = 'org.apache.fineract.ServerApplication'
         jvmFlags = [
-            '-Xmx1G',
             '-Xms1G',
             '-XshowSettings:vm',
             '-XX:+UseContainerSupport',
diff --git a/kubernetes/fineract-server-deployment.yml b/kubernetes/fineract-server-deployment.yml
index 3754d97f9..ec937dda5 100644
--- a/kubernetes/fineract-server-deployment.yml
+++ b/kubernetes/fineract-server-deployment.yml
@@ -113,6 +113,8 @@ spec:
               key: password
         - name: FINERACT_DEFAULT_TENANTDB_CONN_PARAMS
           value: ''
+        - name: JAVA_TOOL_OPTIONS
+          value: '-Xmx1G'
         ports:
         - containerPort: 8443
           name: fineract-server