By default useradd simply creates the user account and group in the /etc/passwd and /etc/group files. It does not create a home directory for the new user. Instead run the
sudo adduser username command, which will prompt for extra information including password, full name, etc. and then create a home directory which will be populated from default information in /etc/skel.
To fix this, you have two options. The simplest would be to run
sudo userdel rashmi, and then start again with the
adduser command, or you could manually create the home directory as root user, and change the ownership of the copied files to match that of the new user:
Confirm that there is no data about to be overwritten. Then
sudo cp -a /etc/skel /home/rashmi
sudo chown -R rashmi:rashmi /home/rashmi
I recommend using the first method if possible, as it will add a usergroup for the new user, which you may not have done yet (you can do this manually by editing the /etc/group file as the root user).