UPDATE 2-StanChart in talks on RBS China, India units -source

* RBS now focused on selling parts to separate buyers-sources

* ANZ in talks to buy RBS units in HK, Taiwan, others-report * Regulatory bottlenecks affecting asset sale - analyst (Add analyst quote, background)

By Michael Flaherty

HONG KONG, July 1 (Reuters) - Asia-focused Standard Chartered (STAN.L) (2888.HK) is in talks to purchase banking assets in China and India owned by the Royal Bank of Scotland (RBS) (RBS.L), a source with direct knowledge of the matter said on Wednesday.

StanChart's pursuit of the units comes as RBS tries to wrap up the sale of its retail and commercial banking divisions in Asia. ANZ (ANZ.AX), Australia's fourth-largest lender, is also considered a leading contender for some of RBS's Asian assets.

The initial plan was to sell the entire group to one buyer for at least $2 billion. But that effort failed, and the process is now focused on selling various parts to separate buyers, sources involved with the process say.

None of sources wanted to be identified because of the sensitivity of the negotiations.

"The one issue is that you do have multiple regulators involved and, at least in the case of India, this has made life difficult for this transaction," said Brian Hunsaker, banking analyst at Fox-Pitt Kelton in Hong Kong.

"I don't know how attractive these assets really are. A lot of these are the old ABN AMRO business. I don't necessarily think they were particularly strong in Asia in commercial banking," Hunsaker added.