The disciplinary panel of UEFA also charged Serbia for discriminatory behavior exhibited by fans during the Nations League match against Switzerland on October 12, which was attended by state president Aleksandar Vucic in Leskovac.
Matches between Serbia and Switzerland have been fraught with political tension in recent years, particularly during the last two World Cups. Granit Xhaka, the captain of Switzerland, has familial ties to Kosovo through his ethnic Albanian heritage.
Serbia does not acknowledge the independence of Kosovo, which was declared in 2008, and the soccer federation had previously advised fans against bringing unauthorized banners to the match against Switzerland.
UEFA's regulations prohibit political expressions at sporting events, and Serbia was charged for conveying a message deemed inappropriate for such occasions.
Additionally, Serbia is subject to a two-year probationary period, during which any further violations will result in the closure of a section of its stadium for one match.
In a separate case, UEFA also sanctioned Hungary for discriminatory chants from its fans, leading to a ban on ticket sales for an upcoming Nations League match in the Netherlands.
Both Hungary and Bosnia-Herzegovina faced charges for "racist or discriminatory behavior" during their Nations League encounter last month in Zenica.
As a result of the sanctions, Hungary is prohibited from selling tickets to fans for a match scheduled on November 16 in Amsterdam, and the disciplinary panel has imposed an additional probationary ticket-sales ban.
Furthermore, UEFA fined Hungary 20,000 euros ($21,700) for the discriminatory actions and an additional 14,500 euros ($15,700) for fans igniting fireworks.
The Bosnian soccer federation is required to close a section of its stadium for the match against the Netherlands on November 19, and UEFA has also fined Bosnia 25,000 euros ($27,000) for the discriminatory behavior of its fans.