Abstract reasoning refers to the ability to analyze information, discover rules at an intangible level, and solve problems in innovative ways. Raven's Progressive Matrices (RPM) test is typically used to examine the capability of abstract reasoning. The subject is asked to identify the correct choice from the answer set to fill the missing panel at the bottom right of RPM (e.g., a 3×3 matrix), following the underlying rules inside the matrix. Recent studies, taking advantage of Convolutional Neural Networks (CNNs), have achieved encouraging progress to accomplish the RPM test. However, they partly ignore necessary inductive biases of RPM solver, such as order sensitivity within each row/column and incremental rule induction. To address this problem, in this paper we propose a Stratified Rule-Aware Network (SRAN) to generate the rule embeddings for two input sequences. Our SRAN learns multiple granularity rule embeddings at different levels, and incrementally integrates the stratified embedding flows through a gated fusion module. With the help of embeddings, a rule similarity metric is applied to guarantee that SRAN can not only be trained using a tuplet loss but also infer the best answer efficiently. We further point out the severe defects existing in the popular RAVEN dataset for RPM test, which prevent from the fair evaluation of the abstract reasoning ability. To fix the defects, we propose an answer set generation algorithm called Attribute Bisection Tree (ABT), forming an improved dataset named Impartial-RAVEN (I-RAVEN for short). Extensive experiments are conducted on both PGM and I-RAVEN datasets, showing that our SRAN outperforms the state-of-the-art models by a considerable margin.