Hundreds of pumping machines have been deployed to resolve water logging, with authorities fully prepared for a mass evacuation.
While incessant rains over the last 24 hours have already caused severe landslides and suspension of local train services in some parts of the city, the Meteorological Department, in its latest warning, has predicted even heavier rainfall on 4-5 August.
The civic body of the city, Brihanmumbai Municipal Corporation (BMC), has advised all offices and establishments to remain closed except for the emergency services.
An alert has also been sounded for high tides (4.51 metres), while authorities have requested people to stay away from beaches and low lying areas.
Mumbai is known as the financial capital of the country where several important installations such as the Reserve Bank of India, Securities and Exchange Board of India, Bank Headquarters, and National Stock Exchange are located.