Amar,
In case you are worried about getting in a recovery situation then do make sure that you keep a copy of the backups on a location on a storage system separate from your database server.
Imagine your server or storage on which the database server resides is hosed then how do you recover your databases?
Most large organization will deploy complex backup to tape, dr site, offsite backup strategies to make sure they are able to get their hands on their application applications in case a true disasters (disk corruption, hurricane, flood, fire) falls.
If your organization does not have a tape backup solution then the least you can do is to make sure the backups are copied over to a different storage system than the one on which your database server is. You can take the backup files and then copy it over to a separate server using a simple ftp or scp command on unix via a scheduled script. Other cheap options may be backup to a nfs storage or a shared storage.
Good luck with your deployment.
warm regards,
sudhir