The intertwining of competing degrees of freedom, anisotropy, and frustration induced strong quantum fluctuations offers an ideal ground for realizing exotic quantum phenomena in the rare-earth based kagome lattice. Herein, we report the synthesis, structure, thermodynamic, muon spin relaxation (μSR), nuclear magnetic resonance (NMR), and inelastic neutron scattering (INS) studies of a frustrated quantum magnet (NBWO), wherein ions constitute a distorted kagome lattice. The INS experiments on NBWO allow us to establish a detailed crystal electric field (CEF) spectrum. The magnetic susceptibility reveals the presence of two energy scales in agreement with the INS results, wherein the higher-energy state is dominated by the thermal population of CEF excitations. The lowest Kramers ground-state doublet is well separated from the excited state, suggesting that the compound realizes a low-energy state at low temperatures. The low-energy state is witnessed via thermodynamic results that reveal an anomaly at 0.3 K typical of a phase transition, which is attributed to the presence of complex magnetic ordering phenomena. The broad maximum in the specific heat well above 0.3 K indicates the presence of short-range spin correlations. The isothermal magnetization reveals a field-induced magnetization plateau at low temperatures. μSR relaxation rate experiments, on the other hand, neither show the signature of a phase transition nor spin freezing down to 34 mK. The zero-field μSR relaxation rate is governed by an Orbach process and reveals the presence of fluctuating moments owing to the depopulation of crystal field levels, reflected as a constant value of the relaxation rate in the temperature range 0.04 ≤ T ≤ 10 K. NMR results indicate the presence of fluctuating moments down to 1.8 K, consistent with μSR experiments. Our comprehensive results reveal that a field-induced quantum phenomenon is at play, exemplifying the proximity effect of competing magnetic states and the coexistence of static and fluctuating moments along with short-range spin correlations in this frustrated kagome magnet. The broad rare-earth family of frustrated kagome magnets is a promising candidate for hosting exotic quantum states driven by spin-orbit coupling and frustration.