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Hi Vishal,
You can limit the number of versions and drafts that be retained in a list or library in SharePoint Server 2016. For your reference: Enable and configure versioning for a list or library.
Here is another article you can refer to: Set\Update Version Count In SharePoint Document Library & Remove Older Versions.
[Edited by Fraser Xu MSFT at 10:36 AM, Mar 27, 2017 (UTC)]
If you have more questions related to SharePoint Server 2016, I suggest you post at our SharePoint Server forumfor professional support. Thanks for your understanding.
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Regards
Fraser