Regarding India's Largest City

[4thofeleven]

Alright, I always assumed the Bombay/Mumbai distinction was essentially the same as Peking/Beijing or Canton/Guangdong - the former is the old fashioned and rather innacurate English transliteration, while the latter is the modern standard, which better represents the native pronunciation. But a couple of the Indian experts on the news recently to discuss the bombings have been referring to the city as Bombay, and I noticed that in the footage of Indian protestors there, a number of them were holding banners than also used the Bombay name.

So what's the deal? Is it more of a Burma/Myanmar situation, with different political meanings for each? Or is it just that older Indians or those who've spent significant time in Britain still use the old spelling?