Good hydration of the skin. Emollients will help. Or just coconut oil, after bath.

If there is no itching, don't worry. Just maintain nutrition. Will be ok with time.

It could be due to dry skin or vitamin deficiency. Mostly it's normal, will subside with good diet and vitamin. Try Zincovit syrup 5 ml once daily for two weeks. Use a mild pH soap and baby sensitive creams and moisturizers. Keep the area moist. Home made remedy is coconut oil, much better than olive oil, as olive oil tends to make the skin darker.