Rubidium bis (2-methyllactato) borate monohydrate (RbMB) was developed by adopting slow solvent evaporation technique. Good crystalline nature of RbMB is confirmed by powder X-ray diffraction analysis. The optical transparency window is observed from 190 nm to 1100 nm. FTIR and FT-Raman spectral analysis endorses the formation of RbMB crystal. Thermal stability of RbMB extends upto 134 degrees C. Molecular structure of RbMB crystal is interpreted through the observed chemical shifts through H-1 NMR and C-13 NMR spectroscopy. The intermolecular interactions between organic and inorganic moieties are well established. These intermolecular interactions and electron delocalization enhances the third order nonlinear susceptibility (chi 3) value and is found as 3.75354x10(-6) esu. The self-defocusing and reverse saturable absorption nature gives negative non-linear refractive index (n(2)) and positive nonlinear absorption co-efficient (beta). This made RbMB a suitable candidate for using in Q-switching, optical pulse shorteners and optical energy limiters applications.