Rinse the rice until the water runs clear. Allow the rice to drain fully and rice to dry.
Press the saute button on the Instant Pot. Once it reads "hot", add the oil to the pot along with the rice. Cook for 4 to 5 minutes, stirring occasionally, until toasted.
Add the bell pepper, jalapeno, onion, garlic, cumin, and salt and saute for another minute.
Add the water and deglaze the pot. Make sure to scrape the bottom so nothing is sticking.
Add the canned Rotel tomatoes on top, but DO NOT STIR.
Close the lid and set the Instant Pot to 5 minutes on high pressure. Valve should be set to sealing.
Once the time is up, allow the pot to naturally release pressure for 2 minutes, then do a quick pressure release.
Carefully remove the lid and stir the tomatoes together with the rice. Replace the lid and allow to sit for another 2 minutes.
Fluff the rice with a fork and garnish with cilantro and lime.
Serve Mexican Rice as a side or inside a burrito or tacos.
Cover and refrigerate any leftovers for up to 3 days.