Fetal arrhythmia, the abnormal heartbeat of a fetus is broadly classified as tachy arrhythmia (too fast > 160 beats/min) and brady arrhythmia (too slow < 120 beats/min). Detection of this irregular heart beat rhythm of the fetus during pregnancy is still a challenging task for the clinicians. Heart rate detection through electrocardiography has always been accurate for identifying cardiac defect in humans. Adult ECG has achieved several developments in the modern medicine whereas noninvasive fetal ECG (FECG) continues to be a big challenge. Automatic detection of fetal heart rate is vital for monitoring the unborn infant during pregnancy. The non-invasive placement of electrodes over the abdomen region of pregnant women records the ECG signal of both mother and fetus. The arrhythmia affected FECG signals (n = 14) are processed from the physionet database. This raw ECG signal is preprocessed using a Savitzky-Golay filter and symlet wavelet transform to remove the basic noises. Adaptive recursive least square filter is preferably chosen for extracting the FECG, using mother's thorax ECG as a reference. An accurate PQRST wave-shape of the FECG is required for the proper diagnosis of fetal cardiac defects. Using a single channel abdominal ECG signal, the proposed work generates extracted fetal ECG and an automated visual display of fetal heart rate. The presence of arrhythmia and fetal distress can be analyzed through fetal heart rate display and abnormal conductivity of PQRST wave respectively. We have analyzed fetal arrhythmias through ECG extraction and the same was compared with the echocardiograph results given by pediatric cardiologist. This study helps to identify the fetal distress at early gestational age that helps the obstetricians to make quick decisions before or immediately after delivery.