Steganography is the process of hiding secret message into a cover medium to conceal the existence of the message. The redundant nature of image pixels make them suitable medium to hide secret information. In this paper, a new improved technique that uses pixel indicator method to hide secret data bits in most significant bits (MSBs) of the cover image is proposed. Moreover, a central portion of image is selected to hide secret message for more security. Here, red channel is used as an indicator to hide secret message in 5th and 6th bits of either green channel or blue channel of RGB image. If the number of 1’s in red channel are even, green channel is used for embedding otherwise blue channel is used. The experimental results obtained by implementation of the proposed algorithm in MATLAB showed that the stego-images images are of high quality having high PSNR values. It provides better security and imperceptibility.