The school didn't outline what behavior led to Rice being disciplined.
"Accountability is a vital element of the Rutgers Athletics family and it is imperative our head coaches act and lead in a responsible manner," Rutgers Athletic Director Tim Pernetti said in a statement announcing the suspicion.
Rutgers said Rice would miss home games against Alabama-Birmingham, Howard and Rider without pay and be fined $50,000.
Associate head coach David Cox will take over the team until Jan. 2, when the Scarlet Knights open Big East Conference play against No. 4-ranked Syracuse. Rutgers is 7-2 this season.
"Since becoming a coach at the age of 21, I have taken great pride in not only helping young men learn the game of basketball but also in teaching them about character, respect and hard work," Rice said in a statement released by the school.
"To the extent that my conduct has ever been in contrast with those principles, I have failed my players -- and myself -- and I take full responsibility for my actions and accept the terms of my suspension. I will learn from my mistakes and I will become a better coach, teacher and role model."
Rice is in his third season at Rutgers. He previously coached at Robert Morris for three seasons