Rumbling, shaking felt in Vic earthquake

Residents heard a large explosion and felt a rumble during a 2.7 magnitude earthquake in Melbourne's outer east.

Geosciences Australia seismologist Dr David Jepsen said a small earthquake occurred in the Bayswater area about 4pm (AEDT) on Monday.

He said it could be felt or heard within about 20km of the epicentre and was too small to cause any damage.

"A vast number of people would have felt or heard the earthquake and we have received a lot of reports on our website," he said.

"Either they have heard a large explosion, others a bit of a rumble ... shaking."