Error 3201 Operating system error 5(Access is denied.) Creating backup on network drive Msg 3201, Level 16, State 1, Line 1
Cannot open backup device 
     '\\nst-shantanug\c$\Dummy Db Backup\dummydb.bak'. 
Operating system error 5(Access is denied.).
Msg 3013, Level 16, State 1, Line 1
BACKUP DATABASE is terminating abnormally.


What all permissions do I need to assign to drive or pc where I want to take backup of my database.
The SQL Service account should have write access to the folder to be able to write the backup there.

Depending if you also want to create subdirectories, overwrite backups or delete old backups you need appropriate rights for that too.