Thanks Jess,
With reference to my above questions,
-Reducing cell size means that I need to have more k-points for the simulation so that I get good accuracy of results, even reducing the mesh cut-off reduces accuracy.
Is there a thumb rule for these parameters ?
Summarizing, to reduce memory consumption , the options are:
1. reduce k point sampling along c direction
2. reducing density mesh cutoff
3. basis set (DZP, SZP)
4. Does exchange correlation significantly affect memory / CPU time ?