A new formulation based on lumped plasticity and inelastic hinges is presented in this paper for nonlinear analysis of Reinforced Concrete (RC) frame structures. Inelastic hinge behaviour is described using the principles of Continuum Damage Mechanics (CDM). Member formulation contains provisions to model stiffness degradation due to cracking of concrete and yielding of reinforcing steel. Depending on its nature, cracking is classified as concentrated or distributed. Concentrated cracking is accounted through a damage variable and its growth is defined based on strain energy principles. Presence of distributed flexural cracks in a member is taken care of by modelling it as non-prismatic. Plasticity theory supported by effective stress concept of CDM is applied to describe the post-yield response. Nonlinear quasi-static analysis is carried out on a RC column and a wide two-storey RC frame to verify the formulation. The column is subjected to constant axial load and monotonic lateral load while the frame is subjected to only lateral load. Computed results are compared with those due to experiments or other numerical methods to validate the performance of the formulation and also to highlight the contribution of distributed cracking on global response.