David Boon of the ICC Elite Panel of Match Referees imposed the sanction after Virat Kohli's side was ruled to be one over short of the target after time allowances were taken into consideration.
The much-anticipated India's tour of Australia will get underway as both sides lock horns in the first of the three-match ODI series. India begin their ICC Cricket World Cup Super League campaign as the men in Blue resume international cricket.
However, their bid to retain the trophy took a big hit when Virat Kohli announced that he would be returning to after the first Test, to attend his pregnant wife Anushka. This also provides a chance for Rohit Sharma to showcase his talent as a skipper.
"It was a difficult decision for Kane to make but one which has the complete support of the selectors and the entire playing squad," CA national selector Trevor Hohns said on Wednesday.