A wideband active noise cancelling system involves adaptive filters with hundreds of taps. The computational burden required with these long adaptive filters. This paper presents active noise cancelling system using M-channel QMF filter banks in which the adaptive weights are computed in subbands. The analysis and synthesis filter banks use cosine-modulated pseudo QMF filters. The reference signal for on-line identification of error path transfer characteristics is used to difference signal between the output of adaptive filters and the output of lowpass subband filters. The proposed adaptive subband filter bank suggests robust active noise cancelling system retaining the computational complexity and convergence speed advantaged of subband processing.