Cannot delete bank account &1. Only inactive accounts can be deleted.

What causes this issue?

You are trying to delete a bank account that has been activated.

System Response

For auditing purposes, you can delete only inactive bank accounts and
drafts. Deleting a bank account that has been activated is not
supported.

How to fix this error?

You can close the bank account if it is no longer in use.

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.