The 23-year-old, who worked under Redknapp at Tottenham Hotspur, was pictured in the weekend papers inhaling nitrous oxide, otherwise known as laughing gas, but the governing body confirmed on Tuesday that they would not be taking action against the right-back.
Redknapp is outraged by this and claims that Walker is setting a bad example for the younger generation.
"If he doesn't get some sort of reprimand there's something wrong," Redknapp told talkSPORT. "I'll be honest with you, if he was playing for Rochdale or somebody they'd throw the book at him, the FA. But because he's an England player and we need him, it looks like nothing's going to happen.
"I'm disappointed with the way he's behaved. I've got grandkids and they are football mad every one of them and they see that picture of him on the back pages doing that. It sends out bad signals for me. It's not what I want to see. They love him, they love all the [Tottenham] players.
"It was a bad, bad picture. Drugs wasn't part of our life when I was growing up, but when I see someone doing that, sniffing whatever that is, and apparently it can kill kids, that is a bad message to be sending out."
Walker was in action on Tuesday night as England drew 0-0 in Ukraine.