diff --git a/cmd/admin-handler-utils.go b/cmd/admin-handler-utils.go
index 706a52463..b0a098c0c 100644
--- a/cmd/admin-handler-utils.go
+++ b/cmd/admin-handler-utils.go
@@ -168,10 +168,16 @@ func toAdminAPIErr(ctx context.Context, err error) APIError {
 			}
 		case errors.Is(err, errPolicyInUse):
 			apiErr = APIError{
-				Code:           "XMinioAdminPolicyInUse",
+				Code:           "XMinioIAMPolicyInUse",
 				Description:    "The policy cannot be removed, as it is in use",
 				HTTPStatusCode: http.StatusBadRequest,
 			}
+		case errors.Is(err, errSessionPolicyTooLarge):
+			apiErr = APIError{
+				Code:           "XMinioIAMServiceAccountSessionPolicyTooLarge",
+				Description:    err.Error(),
+				HTTPStatusCode: http.StatusBadRequest,
+			}
 		case errors.Is(err, kes.ErrKeyExists):
 			apiErr = APIError{
 				Code:           "XMinioKMSKeyExists",
diff --git a/cmd/iam-store.go b/cmd/iam-store.go
index a0a032d62..57184f9f3 100644
--- a/cmd/iam-store.go
+++ b/cmd/iam-store.go
@@ -27,7 +27,6 @@ import (
 	"strings"
 	"time"
 
-	"github.com/dustin/go-humanize"
 	jsoniter "github.com/json-iterator/go"
 	"github.com/minio/madmin-go/v2"
 	"github.com/minio/minio-go/v7/pkg/set"
@@ -2221,13 +2220,13 @@ func (store *IAMStoreSys) UpdateServiceAccount(ctx context.Context, accessKey st
 	delete(m, sessionPolicyNameExtracted)
 
 	// sessionPolicy is nil and there is embedded policy attached we remove
-	// rembedded policy at that point.
+	// embedded policy at that point.
 	if _, ok := m[iampolicy.SessionPolicyName]; ok && opts.sessionPolicy == nil {
 		delete(m, iampolicy.SessionPolicyName)
 		m[iamPolicyClaimNameSA()] = inheritedPolicyType
 	}
 
-	if opts.sessionPolicy != nil {
+	if opts.sessionPolicy != nil { // session policies is being updated
 		if err := opts.sessionPolicy.Validate(); err != nil {
 			return updatedAt, err
 		}
@@ -2237,8 +2236,8 @@ func (store *IAMStoreSys) UpdateServiceAccount(ctx context.Context, accessKey st
 			return updatedAt, err
 		}
 
-		if len(policyBuf) > 16*humanize.KiByte {
-			return updatedAt, fmt.Errorf("Session policy should not exceed 16 KiB characters")
+		if len(policyBuf) > 2048 {
+			return updatedAt, errSessionPolicyTooLarge
 		}
 
 		// Overwrite session policy claims.
diff --git a/cmd/iam.go b/cmd/iam.go
index 4f5b2b0a2..05351accf 100644
--- a/cmd/iam.go
+++ b/cmd/iam.go
@@ -32,7 +32,6 @@ import (
 	"sync/atomic"
 	"time"
 
-	humanize "github.com/dustin/go-humanize"
 	"github.com/minio/madmin-go/v2"
 	"github.com/minio/minio-go/v7/pkg/set"
 	"github.com/minio/minio/internal/arn"
@@ -944,8 +943,8 @@ func (sys *IAMSys) NewServiceAccount(ctx context.Context, parentUser string, gro
 		if err != nil {
 			return auth.Credentials{}, time.Time{}, err
 		}
-		if len(policyBuf) > 16*humanize.KiByte {
-			return auth.Credentials{}, time.Time{}, fmt.Errorf("Session policy should not exceed 16 KiB characters")
+		if len(policyBuf) > 2048 {
+			return auth.Credentials{}, time.Time{}, errSessionPolicyTooLarge
 		}
 	}
 
diff --git a/cmd/sts-handlers.go b/cmd/sts-handlers.go
index 5b7126372..10e188b57 100644
--- a/cmd/sts-handlers.go
+++ b/cmd/sts-handlers.go
@@ -238,7 +238,7 @@ func (sts *stsAPIHandlers) AssumeRole(w http.ResponseWriter, r *http.Request) {
 	// The plain text that you use for both inline and managed session
 	// policies shouldn't exceed 2048 characters.
 	if len(sessionPolicyStr) > 2048 {
-		writeSTSErrorResponse(ctx, w, ErrSTSInvalidParameterValue, fmt.Errorf("Session policy shouldn't exceed 2048 characters"))
+		writeSTSErrorResponse(ctx, w, ErrSTSInvalidParameterValue, errSessionPolicyTooLarge)
 		return
 	}
 
diff --git a/cmd/typed-errors.go b/cmd/typed-errors.go
index c125d47f8..6b9d4391a 100644
--- a/cmd/typed-errors.go
+++ b/cmd/typed-errors.go
@@ -115,3 +115,6 @@ var errUploadIDNotFound = errors.New("Specified Upload ID is not found")
 
 // error returned when PartNumber is greater than the maximum allowed 10000 parts
 var errInvalidMaxParts = errors.New("Part number is greater than the maximum allowed 10000 parts")
+
+// error returned for session policies > 2048
+var errSessionPolicyTooLarge = errors.New("Session policy should not exceed 2048 characters")
diff --git a/internal/jwt/parser.go b/internal/jwt/parser.go
index 62e4138b1..44c29c284 100644
--- a/internal/jwt/parser.go
+++ b/internal/jwt/parser.go
@@ -34,6 +34,7 @@ import (
 	"time"
 
 	"github.com/buger/jsonparser"
+	"github.com/dustin/go-humanize"
 	jwtgo "github.com/golang-jwt/jwt/v4"
 	jsoniter "github.com/json-iterator/go"
 )
@@ -53,7 +54,7 @@ var (
 	SigningMethodHS512 *SigningMethodHMAC
 )
 
-const base64BufferSize = 8192
+const base64BufferSize = 64 * humanize.KiByte
 
 var (
 	base64BufPool sync.Pool