In the present time, financial frauds are increasing, and combating these problems is very difficult due to complex areas of financial laws and its loophole. This paper focuses on the concept of financial and systematic fraud and the method used to combat financial fraud. Additionally, it is also focused on the laws and rules which are made by the Reserve Bank of India and other competent authorities to combat financial and systematic fraud. The research methodology used for this study is purely doctrinal, based on primary and secondary sources. It is found that there are shortcomings in laws and regulations that give rise to financial and systematic fraud. The present study will help to fill the knowledge gap and address issues relating to financial and systematic fraud. This study will also improve the understanding of financial and systematic fraud and approach to combat these kinds of fraud.