Condition monitoring of induction machines (IMs) with the aim of increasing the machine’s lifetime, improving the efficiency and reducing the maintenance cost is necessary and inevitable. Among different types of methods presented for mechanical and electrical fault tracing in induction machines, stator current signature analysis has attracted great attention in recent decades. This popularity is mainly due to the non-invasive nature of this technique. A non-recursive method named variational mode decomposition (VMD) is used for the decomposition of any signal into several intrinsic mode functions (IMFs). This technique can be employed for detection of faulty components in a current signature. However, mode mixing of extracted IMFs makes the mechanical and electrical fault detection of IMs complicated, especially in the case where fault indices emerge close to the supply frequency. To achieve this, we rectify the signal of stator current prior to applying VMD. The main advantage of the presented approach is allowing the fault indices to be properly demodulated from the main frequency to avoid mode mixing phenomenon. The method shows that the dominant frequencies of the current signal can be isolated in each IMFs, appropriately. The proposed strategy is validated to detect the rotor asymmetric fault (RAF) in a wound rotor induction machine (WRIM), in both transient and steady-state conditions.