diff --git a/src/config/schema-transformer/to_bgp.py b/src/config/schema-transformer/to_bgp.py
index 24b046a3df1..5cc34418823 100644
--- a/src/config/schema-transformer/to_bgp.py
+++ b/src/config/schema-transformer/to_bgp.py
@@ -636,6 +636,9 @@ def locate_routing_instance(self, rinst_name, service_chain=None,
                         for rt in self.rt_list:
                             rtgt_obj = RouteTarget(rt)
                             rinst_obj.add_route_target(rtgt_obj, inst_tgt_data)
+                        if not is_default and self.allow_transit:
+                            rtgt_obj = RouteTarget(self.get_route_target())
+                            rinst_obj.add_route_target(rtgt_obj, inst_tgt_data)
                     _vnc_lib.routing_instance_update(rinst_obj)
             except (NoIdError, KeyError):
                 rinst_obj = None
@@ -647,6 +650,9 @@ def locate_routing_instance(self, rinst_name, service_chain=None,
                     for rt in self.rt_list:
                         rtgt_obj = RouteTarget(rt)
                         rinst_obj.add_route_target(rtgt_obj, inst_tgt_data)
+                    if not is_default and self.allow_transit:
+                        rtgt_obj = RouteTarget(self.get_route_target())
+                        rinst_obj.add_route_target(rtgt_obj, inst_tgt_data)
                 _vnc_lib.routing_instance_create(rinst_obj)
         except (BadRequest, HttpError) as e:
             _sandesh._logger.error(