AFL officials investigated the incident after it became a major talking point out of the Giants' 52-point win in their season opener at Engie Stadium on Sunday.
McRae, who was found to have said "well done" to Giants tagger Toby Bedford after he gave away a free kick, received an official warning.
But the league confirmed no further action will be taken against the Magpies' 2023 premiership coach.
Kingsley saw the interaction and was found to have told McRae he was "better than that".
"When on the bench or on-field, interactions between officials, coaches and/or opposition players need to continue to be conducted in a professional manner," the AFL said in a statement.
The latest incident comes with coaches still in the spotlight over interactions with opposition players following Port Adelaide mentor Ken Hinkley's taunting of Hawthorn forward Jack Ginnivan in last year's finals series.
Hinkley was fined $20,000 for conduct unbecoming and later apologised for his actions.
GWS coach Kingsley on Monday insisted he had no personal issue with McRae, but admitted he took exception to the latter's interaction with Bedford.
"There was no abuse or anything like that from Fly (McRae) at all. There wasn't much in it, to be frank," Kingsley told SEN on Monday.
"I didn't appreciate some of the cheering directed towards Toby, so I just felt obliged just to say, 'Don't do that, that's not on'."
Kingsley worked alongside McRae as assistants to Richmond coach Damien Hardwick during the Tigers' 2019 and 2020 premiership campaigns.
The third-year Giants coach was keen to pour cold water on the former colleagues' clash in front of the benches.
"There wasn't any abuse, so let's be clear about that," Kingsley said.
"I just said, 'Don't do that'. It's blown up a little bit, based on what I've been told.
"But I don't know if there's a lot in it, to be fair."
Footage of the coaches' fiery exchange was shown on the television broadcast, but no audio was played.
McRae also downplayed Sunday's incident in his post-match press conference.
"I was having a bit of fun with Kingers, an old mate of mine," McRae said.
"I was just stirring. I just said, 'We're coming', and he just had a bit of fun.
"He's a bit fierier than me. I'm a bit more humorous.
"There was nothing to it. If you want to make it a story, it's a nothing story.
"We're old colleagues and I was just having a bit of fun with him.
"If it's more than that, we shake hands at the end of the game and I said, 'We'll see you next time we play you'."
Many coaches prefer to operate at ground level during play, but Kingsley dismissed suggestions there could be issues having rival coaches positioned so close to each other near the interchange benches.
"I don't think it would ever escalate to anything more than a couple of words being exchanged," Kingsley said on Monday.
"I think all coaches are pretty measured and controlled in their responses. I don't think anyone would get over-excited."
26°C