This paper presents a refined protection algorithm of the unfused 22.9kV shunt capacitor banks in grounded wye connection to improve the existing algorithm using the voltage difference method. It is difficult to detect ground faults with arc near the input points or ground faults near the grounding point by the existing algorithm using only the voltage balanced relay. This paper shows that ground faults with arc near the input point can be detected by harmonics analysis of the differential voltage and that it has no impact of harmonics out of nonlinear loads which have the quantitative influence on capacitor banks. Thus the proposed method using harmonics analysis can be a proper detection method. In case of ground faults near the grounding point, an OVGR is being added recently and its validity is verified in this paper. The proposed method is applied to a 22.9kV example system and is verified that the proposed algorithm can detect clearly faults which are not easy to detect by the existing method.