A rigorous quantum theory of atomic collisions in the presence of radio frequency (rf) magnetic fields is developed and applied to elucidate the effects of combined dc and rf magnetic fields on elastic scattering in ultracold collisions of Rb atoms. We show that rf fields can be used to induce Feshbach resonances, which can be tuned by varying the amplitude and frequency of the rf field. The rf-induced Feshbach resonances occur also in collisions of atoms in low-field-seeking states at moderate rf field strengths easily available in atom chip experiments, which opens up the world of tunable interactions to magnetically trappable atomic quantum gases.