I'm not familiar with the royal knife, but most knife fish are practically blind, so it's not just the light it's hiding from. It sends out electrical signals that tell it when it's enclosed in something. That's why they will "hide" in a clear tube or soda bottle. They feel more secure when surrounded. I don't like to use the clear hideout, though, because knife fish are scaleless and need some protection from the light, especially if you use halides or high-Kelvin lighting.
They do prefer the dark, but they will very quickly get acclimated to red lighting. For about $20 at Petsmart, you can get a red LED light and transformer. Leave the red light on all night and you can start watching your knife as you train it to come out more.
You don't have to leave all the hiding places, but definitely leave one or two. You can construct them creatively so that you can still see the fish and feed it there. Using the red light, you can start directing food toward it so that it associates you with food. Then, gradually make your feeding times earlier in the evening or later in the morning when the natural light in the room is better. If you find that it loves a particular food, you can start feeding that during daylight hours and hope that your knife finds it irresistable enough to venture out for a minute or two. You can make the food more attractive by soaking it in Seachem's garlic guard first if you like. That will help train the fish that the garlic odor means come to dinner!
I don't know about the activity level of your other fish. My knife is in with a school of fish and always comes out when they're eating because it recognizes the commotion as a sign that food is in the tank. If your other fish are active during the day, it may be helpful, unless they are very aggressive. My black ghost knife comes out intermittently at all hours of the day even when the tank lights are on. Of course, if you have just added it to the tank, it might take a while to get comfortable. I would just take it slowly and try not to stress the fish. The red light will alllow you to get to know it better on its own terms while it's adjusting to you and your home.
Hope all that helps, and good luck with your knife!