Rounded Inner corners with transparent inside frame

First of all, create 3 xml layout in drawable folder:

1. First: frame.xml
2. Second: frame_build.xml
3. Third: red.xml

(You can change this name as you wish),

frame.xml:

<?xml version="1.0" encoding="UTF-8"?>
<layer-list xmlns:android="http://schemas.android.com/apk/res/android">
    <item android:bottom="20dp" android:drawable="@drawable/red" android:top="-25dp" />
    <item android:bottom="15dp" android:drawable="@drawable/frame_build" android:top="5dp" android:left="-5dp" android:right="-5dp" />
</layer-list>

frame_build.xml :

<?xml version="1.0" encoding="UTF-8"?>
<shape xmlns:android="http://schemas.android.com/apk/res/android" android:shape="rectangle">
    <padding android:left="10dp" android:top="10dp" android:right="10dp" android:bottom="10dp" />
    <corners android:radius="40dp" />
</shape>

red.xml

<?xml version="1.0" encoding="UTF-8"?>
<shape xmlns:android="http://schemas.android.com/apk/res/android" android:shape="rectangle">
    <stroke android:width="40dp" android:height="40dp" android:color="#B22222" />
    <padding android:left="8dp" android:top="-1dp" android:right="8dp" android:bottom="9dp" />
    <corners android:radius="-10dp" />
</shape>

Finally refer your view or layout to Frame XML as follow :

  android:background="@drawable/frame"

This tested and output as below image:

Hope this help .

create the following rounded_corner.xml:

<?xml version="1.0" encoding="utf-8"?>
<layer-list xmlns:android="http://schemas.android.com/apk/res/android">
    <item
        android:bottom="-10dp"
        android:left="-10dp"
        android:right="-10dp"
        android:top="-10dp">
        <shape android:shape="rectangle">
            <stroke
                android:width="10dp"
                android:color="#ffffff" />
            <corners android:radius="20dp" />
        </shape>
    </item>
</layer-list>

add this below your imageView, which you want to apply the frame on it:

<View
    android:layout_width="fill_parent"
    android:layout_height="fill_parent"
    android:layout_alignBottom="@+id/my_image_view"
    android:layout_alignLeft="@id/my_image_view"
    android:layout_alignRight="@+id/my_image_view"
    android:layout_alignTop="@id/my_image_view"
    android:background="@drawable/rounded_corner" />