diff --git a/litellm/proxy/management_endpoints/team_endpoints.py b/litellm/proxy/management_endpoints/team_endpoints.py
index e90bcd5aa31..4d4d1ef2774 100644
--- a/litellm/proxy/management_endpoints/team_endpoints.py
+++ b/litellm/proxy/management_endpoints/team_endpoints.py
@@ -1268,11 +1268,6 @@ async def new_team(
 
         complete_team_data_dict = complete_team_data.model_dump(exclude_none=True)
 
-        if complete_team_data_dict.get("budget_limits") is not None:
-            complete_team_data_dict["budget_limits"] = json.dumps(
-                complete_team_data_dict["budget_limits"]
-            )
-
         # Serialize router_settings to JSON (matching key creation pattern)
         router_settings_value = getattr(data, "router_settings", None)
         router_settings_json = (
diff --git a/tests/test_litellm/proxy/management_endpoints/test_team_endpoints.py b/tests/test_litellm/proxy/management_endpoints/test_team_endpoints.py
index c8d702416ef..b81807ee19e 100644
--- a/tests/test_litellm/proxy/management_endpoints/test_team_endpoints.py
+++ b/tests/test_litellm/proxy/management_endpoints/test_team_endpoints.py
@@ -461,66 +461,6 @@ async def test_new_team_with_object_permission(mock_db_client, mock_admin_auth):
     assert "object_permission" not in team_data
 
 
-@pytest.mark.asyncio
-async def test_new_team_serializes_multi_window_budget_limits(
-    mock_db_client, mock_admin_auth
-):
-    """
-    Regression test for LIT-3896: /team/new must json-encode budget_limits before
-    passing them to Prisma. The LiteLLM_TeamTable.budget_limits column is `Json?`,
-    and jsonify_team_object only stringifies dict values, so a raw Python list
-    reaches Prisma unencoded and the create call 500s.
-    """
-    import json
-
-    mock_db_client.jsonify_team_object = lambda db_data: db_data
-    mock_db_client.get_data = AsyncMock(return_value=None)
-    mock_db_client.update_data = AsyncMock(return_value=MagicMock())
-    mock_db_client.db = MagicMock()
-
-    mock_db_client.db.litellm_teamtable = MagicMock()
-    mock_db_client.db.litellm_teamtable.count = AsyncMock(return_value=0)
-    mock_db_client.db.litellm_teamtable.create = AsyncMock(
-        return_value=MagicMock(team_id="team-budget-windows")
-    )
-    mock_db_client.db.litellm_teamtable.update = AsyncMock(return_value=MagicMock())
-    mock_db_client.db.litellm_usertable = MagicMock()
-    mock_db_client.db.litellm_usertable.update = AsyncMock(return_value=MagicMock())
-
-    from fastapi import Request
-
-    from litellm.models.team import BudgetLimitEntry
-    from litellm.proxy._types import NewTeamRequest
-    from litellm.proxy.management_endpoints.team_endpoints import new_team
-
-    team_request = NewTeamRequest(
-        team_alias="multi-window-team",
-        budget_limits=[
-            BudgetLimitEntry(budget_duration="1d", max_budget=10.0),
-            BudgetLimitEntry(budget_duration="30d", max_budget=100.0),
-        ],
-    )
-
-    dummy_request = MagicMock(spec=Request)
-
-    await new_team(
-        data=team_request,
-        http_request=dummy_request,
-        user_api_key_dict=mock_admin_auth,
-    )
-
-    created_data = mock_db_client.db.litellm_teamtable.create.call_args.kwargs["data"]
-
-    assert isinstance(created_data["budget_limits"], str)
-
-    decoded = json.loads(created_data["budget_limits"])
-    assert isinstance(decoded, list)
-    assert len(decoded) == 2
-    assert {w["budget_duration"] for w in decoded} == {"1d", "30d"}
-    assert {w["max_budget"] for w in decoded} == {10.0, 100.0}
-    assert all(w.get("reset_at") for w in decoded)
-
-
 @pytest.mark.asyncio
 async def test_new_team_with_mcp_tool_permissions(mock_db_client, mock_admin_auth):
     """