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Capacitive voltage transformer (CVT) has an ideal steady state response at the system power frequency, while its dynamic response is inferior. This may lead to the mis-operation of distance relays during a fault. This paper presents a new method in order to correct CVT transient response. The proposed method is able to eliminate transients emerging in the CVT output for various fault conditions and CVT parameters in the real-time. The simulation results reveal that the modified CVT exhibits a low percentage error. Moreover, the percentage overreach of distance relay connected to the modified CVT is considerably reduced.