Whenever I go to a folder with a .rvmrc file, there is a warning:
Warning! PATH is not properly set up, \'/home/me/.rvm/gems/ruby-2.0.0-p247/bin
Okay, so I ran an export PATH command without realizing the implications and ran into the identical error, but I also lost all control of my typical commands like cd and pwd. I didn't want to reset the rvm tools I'd already installed per some of the answers above.
First attempt was to some sort of mac default path (found on google):
$ export PATH="/usr/bin:/bin:/usr/sbin:/sbin:/usr/local/bin"
Which actually solved my first problem of not having access to my typical command line tools, but was still getting the same error as @Santosh's initial problem. The next thing I did was navigate to my directory where I've set up rvm to start, and then to run a new export command as follows:
$ export PATH="$PATH"
This was how I initially set up rvm, and no more errors. Hope this helps someone