I have this file inside DCIM on internal memory. It takes up a lot of space and I'm getting short of it. So I checked what is taking that much space and found out this file alone takes space upto a GB. So can I remove it and will my mobile malfunction if it is removed?
You can delete that file safety, but it will be recreated soon. I have not tried to prevent its recreation, but the method described in this article might work... Let us know if it does!