Hi @Mahavir Saroj ,
if you are referring to the staging location in the restore process of Azure Backup in my opinion a non-ZRS storage account (LRS) should be sufficient. After the successful restore the copy of the VD file should be deleted to avoid unnecessary charges.
(If the reply was helpful please don't forget to upvote and/or accept as answer, thank you)
Regards
Andreas Baumgarten