This paper proposes a new model-based diagnostic technique, which is the so-called virtual current technique (VCT), for the diagnosis of rotor faults in direct rotor field oriented controlled (DRFOC) induction motor drives. By measuring the oscillations at twice the slip frequency found in the rotor flux of the machine, and by conjugating this information with the knowledge of some motor parameters, as well as the parameters of the flux and current controllers, it is possible to generate a virtual magnetizing current which, after normalization, allows the detection and quantification of the extension of the fault. The proposed method allows one to overcome the major difficulties usually found in the diagnosis of rotor faults in closed-loop drives by providing information about the condition of the machine in a way that is independent of the working conditions of the drive such as the load level, reference speed, and bandwidth of the control loops. Although the VCT was primarily developed for traction drives used in railway applications, it can be incorporated in any DRFOC drive at almost no additional cost. Several simulation results, obtained with different types of DRFOC drives, as well as experimental results obtained in the laboratory, demonstrate the effectiveness of this new diagnostic approach. [ABSTRACT FROM AUTHOR]