In this paper, a new method based on Adaptive Neuro-Fuzzy Inference System (ANFIS) is proposed for locating the switched capacitor banks in distribution systems. To train the proposed ANFIS model, an index based on current transient is introduced, which is calculated either offline by using data or online by real time simulation. The proposed method uses only current transient waveforms, immediately before and after the switching instant. Since only the current signal is used which is available in several locations, the method is simple and can be applied online. The method uses wavelet to determine the capacitor switching instant, which is needed for the ANFIS model to locate the switching capacitor. The method is simulated using PSCAD. Through various simulations, it is shown that other power quality disturbances such as voltage dip, unbalances and harmonics cannot disturb the method. Moreover, the size and connection type of the capacitor bank do not affect the method accuracy. The proposed algorithm is validated by simulating the IEEE 13-bus distribution system. According to the simulation results, the method is reliable enough to be applied to real systems.