Wash the rice 4 to 5 times until the water turns clear. Drain and set it aside.
Press the saute button of the Instant Pot. Once it displays hot, add oil (or ghee) to it. Then add the bay leaf, sliced green chili, cloves, green cardamom and cumin seeds. Let the cumin seeds splutter.
Then add the rinsed basmati rice to the pot. Stir the rice with the spices for 30 seconds. Then add water, salt and stir.
Close the pot with its lid and press the manual/pressure cook button. Cook on high pressure for 5 minutes with the pressure valve in the sealing position.
Let the pressure release naturally for 2 minutes and then do a quick pressure release by manually moving the pressure valve from the sealing to the venting position.