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I need to create segmentation rules for showing a banner in my site based on zip. It is difficult to create rules for each zip as there might be 1000s of zip code.

Is it possible to create and upload rules in csv / json file to Sitecore?

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As Mark said, uploading rules is not a feature. You might instead want to look at the functionality that is available out-of-the-box for GeoIP rules. Do you need a rule for every single zip code? That is a lot of content to manage and unlikely what is expected by the authors.

I would suggest determining what your different banner variations are and what see if you can use the GeoIP-based rules to create the segments you need for the banners.

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No.

Nor would it be a good idea to have 1000s of individual personalisation conditions set up on any one of your renderings of your site. While the Rules Engine is reasonably performant, I doubt it scales nicely in this scenario,

You should instead be looking at a custom action. One you code yourself. That will hold the CSV data and assign the data source you require.

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