Each player must also complete 100 hours of community service before being considered for future selection, while it was confirmed that the cheat had been confined to the trio only, exonerating team mates and coach Darren Lehmann of any wrong-doing.
Training ahead of the fourth and final Test which starts at the Wanderers on Friday was cancelled on Wednesday. "I'm the captain of the Australian team, it's on my watch and I take responsibility for the actions of what happened last Saturday in Cape Town".
Lehmann made his decision after watching Smith and Bancroft deliver emotional apologies at news conferences earlier on Thursday.
Bancroft, who was banned by the Cricket Australia for nine months, will now not represent Somerset in the upcoming county season as the team has chose to end his contract as the overseas player for 2018.
Authorities also needed to act decisively to counter mounting concern from sponsors over reputational damage.
However, Lehmann avoided a question over whether he was responsible, as many pundits have suggested, for the "in-your-face" style of the Australian team.
"For Australian cricket it's not acceptable".
"I'm sorry too to those people who looked up to me around the world especially the kids". I made a serious error of judgment and I now understand the consequences.
"I would like to thank my attractive wife Andrea, my four children and my close friends for allowing me to do this job and supporting me 100 per cent every step of the way".
Regarding scepticism about three players devising a plan without others knowing in a small dressing room at Newlands, Lehmann said there were several rooms in the players area, including a dining room, where they could have spoken.
"We've had a lot of highs along the way and played some really exciting cricket".
If part of Lehmann's brief was to improve the Australian team's behaviour, there is little doubt he has failed.
'All I can do in the short term is ask for forgiveness and hope people find it in their heart to allow me to progress on that journey. "Saying goodbye to the players was the toughest thing I have ever had to do".
Warner, who is now on his way back to Sydney from South Africa, stressed the whole scandal has "damaged cricket". Bancroft will be available to play for the Sri Lankan series. They may as well play the Ashes series.
Bancroft admitted his mistake, while Smith revealed he was aware of the plan in advance.
It was before talking about his family when Lehmann began to choke up. Shout me down if you want, but I'm speaking as a parent! "We're satisfied Cricket Australia has dealt with this incident swiftly for the benefit of the game and its fans". "I don't blame anyone", he said.
"The way we dealt with Phillip Hughes", Lehmann sobbed.
His parting words touched on the magnitude of the issue surrounding his fallen players and what's to come. I have seen first hand the pride in which he has gone about his work and the love he has for the job and his incredible work ethic.
"Hopefully the game gets back to the game of cricket". There is no greater pride for me.