There is the built-in System Image Backup (via Control Panel → Backup and Restore (Windows 7) → "Create a system image") to completely backup the OS, System, and the Recovery partitions.
However, the System Image Backup tool is deprecated, and Microsoft recommends using a third-party tool for image-based backups. "Macrium Reflect" (Trial is available) is my preferred option. An image-based backup completely backs up the chosen partition, so you can revert to the original configuration later if needed. Look for the "Macrium Reflect backup" tutorials on the web. There are lots of guides available.
//Can I save the complete OS image backup in my PC's local disk? If so, if there is a problem with my system and it cannot be used normally, is USB drive available for performing a OS image recovery?//
Macrium Reflect has an option to create a Rescue media. It can be used to restore the backed up image offline.