According to Apple guidelines, they recommend all images to be png.
I have a big background, which is almost 1.5 mb in PNG and 150 Kb in JPG. Having smaller image size will help me in smaller app size.
Can I use JPG file, or it will be against Apple guidelines.
Using JPEGs will not be against Apple guidelines. However you will not be able to use transparent images with JPEGs as they don't have an alpha channel.