Hi Prince,
As per Microsoft the Business Central uses Azure SQL Database as the database technology for its environments. Azure SQL Database is a fully managed relational database service with built-in high availability, backups, and local and regional redundancy.
Azure SQL Database protects Business Central production and sandbox environments by taking automatic backups that it keeps for 28 days. Administrators can use the Business Central admin center to restore the environment to any specific point in time in the past 28 days.
For recovery and retention please go through this page and detailed information is shared - https://learn.microsoft.com/en-us/dynamics365/business-central/dev-itpro/administration/tenant-admin-center-backup-restore
Hope this helps.
JS
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