After months of uncertainty over an embarrassing telephone recruiting scandal, the NCAA spared the school any additional punishment such as a postseason ban or additional scholarship losses.
But former coach Kelvin Sampson, the man at the center of the scandal, faces recruiting restrictions through November 2013 if hired by another school.
"I really believe this allows us to put the whole, ugly episode behind us and move forward," said incoming athletic director Fred Glass.
The announcement ended a 20-month saga that began with Sampson's hiring in March 2006.
Infractions committee chairwoman Jo Potuto acknowledged Indiana was spared additional punishment because of its cooperation with the investigation, its own decision to take away a scholarship and extend recruiting restrictions and the school's long tradition of abiding by the rules.
"It's bittersweet," said current Indiana coach Tom Crean, with the team in Hawaii. "We didn't want to lose postseason, scholarships or television. Thank God we didn't lose any of those so we can continue to move the program without the what-ifs."