Explanation:

The original sentence is erroneous.

Reason: The correct idiomatic expression is 'kick the can down the road' and not 'kickbox the cans over the road'.

kick the can down the road (Idiom):

Meaning: Put off confronting a difficult issue or making an important decision, typically on a continuing basis.

E.g.: I appreciate that he doesn't want to raise taxes, but sooner or later you have to stop kicking the can down the road.

 Hence ‘kick the can down the road’ should be used in place of ‘kickbox the cans over the road’ to make the sentence grammatically correct.

Among the given choices, only option C replaces the given bold part most appropriately.

The sentence after replacement becomes:

RBI regulations must take away incentives of banks to kick the can down the road and “extend and pretend”.

Option C is hence the correct answer.