Concerning the power complementary limitation due to the time-reversed assumption of prototype filter in the design of traditional DFT (Discrete Fourier Transform) modulated filter banks, a time domain modified method was introduced to design the DFT filter banks from the time domain perfect reconstruction perspectives in this paper. Moreover, the designed filter banks were applied to the filter banks based multi-carrier transceivers. The time domain modified method relaxed the time-reversed assumption of prototype filter, that is, the filter banks at the receiver were conjugate transpose form of the filter banks at the transmitter. Moreover, it adopted the time domain formula of the perfect reconstruction property as the solution to design the filter banks at the receiver, which would ensure the perfect reconstruction of filter banks and avoid the power complementary limitation in the design of prototype filter at the same time. Compared to the traditional design method, the time domain modified method improves the design freedom of prototype in the filter banks, so suitable prototype filters could be obtained according to the various application environments without considering power complementary restrictions. Moreover, the time domain modified DFT filter banks based multi-carrier transceivers has a better SER (Symbol Error Ratio) performance in QPSK (Quadrature Reference Phase Shift Keying) modulation, ideal and the 3GPP TS 25.104 pedestrian multipath channel and one-tap frequency-domain equalization.