The earthquake with epicentre at Lamjung, around 80 kilometers northwest of Kathmandu, and had its impact in several cities in Bihar and West Bengal and eastern India. A number of aftershocks were felt for a long time after the quake.
Walls of several buildings in the densely-populated Kathmandu Valley developed severe cracks.
The earthquake first struck around 11:56 am followed by aftershocks, Nepal Police spokesperson Kamal Singh Ban said adding it was too early to determine the toll. One building has been damaged in Kathmandu.
"We are collecting information and mobilising forces for evacuation," he said.
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Indian Embassy spokesperson Abhay Kumar said some walls have collapsed in the impact of the major earthquake and the embassy has set up two helplines.
"I see many old walls have fallen because it was a major earthquake. And aftershocks of the earthquake that are pretty strong were still being felt. People are still outside," he said.
The landmark Dharhara tower in the centre of the capital collapsed and several people are feared trapped.
Television pictures showed some of the rescued being rushed to hospitals.