The magnetized Iron CALorimeter detector (ICAL) which is proposed to be built in the India-based Neutrino Observatory (INO) laboratory, aims to study atmospheric neutrino oscillations primarily through charged current interactions of muon neutrinos and anti-neutrinos with the detector. The response of muons and charge identification efficiency, angle and energy resolution as a function of muon momentum and direction are studied from GEANT4-based simulations in the peripheral regions of the detector. This completes the characterisation of ICAL with respect to muons over the entire detector and has implications for the sensitivity of ICAL to the oscillation parameters and mass hierarchy compared to the studies where only the resolutions and efficiencies of the central region of ICAL were assumed for the entire detector. Selection criteria for track reconstruction in the peripheral region of the detector were determined from the detector response. On applying these, for the 1--20 GeV energy region of interest for mass hierarchy studies, an average angle-dependent momentum resolution of 15--24%, reconstruction efficiency of about 60--70% and a correct charge identification of about 97% of the reconstructed muons were obtained. In addition, muon response at higher energies upto 50 GeV was studied as relevant for understanding the response to so-called rock muons and cosmic ray muons. An angular resolution of better than a degree for muon energies greater than 4 GeV was obtained in the peripheral regions, which is the same as that in the central region.