Corrosion in reinforcing bars is a major cause of concern for sustainability of Reinforced Concrete (RC) structures exposed to extreme environmental conditions. Various RC structures, such as bridges and buildings are adversely affected due to the rebar corrosion, reducing its global load carrying capacity and ductility. In order to ensure an earthquake resistant design of any structure, the ductility of structural members is of chief concern. However, corrosion of reinforcing steel in RC members reduces its seismic performance. Thus, for safety and economic viability of any RC structure, an effective maintenance and repair work strategy is necessary. Based on the strong column - weak beam design concept of RC frames, the beams are the first structural members to absorb damage due to earthquake. Thus, to carry out maintenance and repair work, structural health assessment of RC beams considering the effect of reinforcement corrosion is of utmost importance. The present study aims at establishing a relation between the amount of corrosion induced and its effect on the ductility of an RC beam. A 3D Finite Element (FE) model of an RC beam including the effects of corrosion for nonlinear performance assessment has been modelled in ABAQUS. The FE model is validated with past experimental study including the effects of corrosion. Modelling of uniform corrosion in reinforcement bars involves defining the loss of bond between rebars and concrete, inducing spalling stresses on concrete and reduction in the cross-section area of the rebars. Bond-slip model between surface of concrete and reinforcement has been incorporated through cohesive surface. Spalling stress for uniform corrosion is applied in form of outward uniform pressure on the reinforcement and concrete interface. The cracking of cover concrete due to corrosion along with the flexural cracking in concrete due to incremental loading are implemented together in the present study. A comprehensive FE model is developed in order to obtain correct assessment of corroded beams. As observed from the FE model, the failure mechanism of the considered corroded RC beam is observed to be mostly shear failure as the corrosion level increases. Concrete crushing at the center of the RC beam is identified at the failure point of the beam due to corrosion induced damage. Evolution of displacement ductility index with respect to corrosion is determined for an RC beam based on the numerical study. It has been observed that the displacement ductility index of the beam is reduced significantly after considering a corrosion level of about 12%. Hence, the present study is an effort to establish a relation between structural performance of RC beams and level of reinforcement corrosion, which will be useful in proactive maintenance and repair work for corroded RC beams.